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TOTALLY OBJECTIVE 
CORPORATE FINANCE ADVICE 


FINANCIAL TIMES 


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LONDON - FRANKFURT - NEW YORK 


TElffHONfclOr 01-4891980 


iMK No. 30,401 ★** Saturday 28/Sunday 29 November 1987 


D 8523 A 


W|PA C 


Parts for your car 


WORLD NEWS 

Soviet 

reform 

pledge 


BUSINESS SUMMARY 

China plans 
reform of 
economy 


Ireland’s most wanted man captured in shoot-out 


Wf OUR DUBLM AND BELFAST CORRESPONDENT* 

IRELAND’S most wanted man, condemnation of violence in all Mr O'Hare, 29, nicknamed the lln dentist Mr John O'Grady last the UK. 


ITiere will be no slowlng-down CHINA is to introduce building 

Reties next year and allow 
wt.r , So y iet individuals to set up as estate 

todw Mikh^[ Gorbachev g chief agents as pert of an. economic 


Mr Derate O’Hare, was undergo- 
ing surgery last night after being 
captured and wounded in a 
shootout with security forces in 
which his car passenger was 
killed. 


Its manifestations. 


Border Fax, crashed into a joint month. 


The republic's security forces army and police roadblock near ■ lranxig me ezcnange oi snots extradition have been pacified 
have been involved in a massive Kukenny in the Irish midlands an Irish soldier was wounded by the involvement or the Irish 
sweep through the republic and which was set up after a tip-off. although his condition was not Attorney-General, who will 


_ , Backbench misi 

the exchange of shots extradition have 


hich his car passenger was Northern Ireland for IRA arms A 

lied. and explosives during which a pc 

Mr O’Hare’s arrest came as number of people who escaped 
ish Prime Minister Charles from the Maze Prison In North- wi 


BMW was riddled with thought to be serious. 


ponce and army bullets. The Royal Ulster Constabulary provided by the British authori- 

Mr O'Hare suffered gunshot wish to question Mr O'Hare ties. Four days of debate in the 
wounds to the arms, legs and about serious offences commit- Irish parliament have been set 
chest but was conscious when he ted in Northern Ireland, indud- aside for dicussion of the 
w“ removed from the scene. ing a number of killings related changes. 

He is wanted by police on both to an internal feud In the Irish Opposition parties are 
sides of the Irish border for ques- National Liberation Army. unhappy that a quasi-judicial 

tloning in connection with a Mr Haughey was opening a role has been assigned to the 
senes of murders. He and his debate on an amendment to an Irish Attomev-GeneraL a pollti- 
gang have been sought in a earlier Extradition Act which cal appointment. Another con- 


The Royal Ulster Constabulary provided 


endorse extradition warrants 


economic adviser, said yesterday, reform package. 

Perestroika represented a include tax changes and are 
JJ2L7h! designed in part tohdp alleviate 

the country’s chronic housing 


Irish Prime Minister Charles from the Maze Prison In North- wounds to the arms, legs 
Haughey opened the pariiamen- em Ireland, in the mass IRA chest but wsb conscious wnea 
taiy debate on changes In be- breakout in 1963 have been re-er- was removed from the 


society, he said in London. 

Ihe policy was meant to create 


shortage. Back Page 


social and economic conditions EQUITIES fell slightly in Lon- 
in which industry could flourish don ht thin trading as the pound 
and required radical changes, rose above $1.80 for the first 
particularly in the centralised time in 5% years. The FT Ordi- 


The reforms f land’s extradition law with a rested. He is wanted by police on both to an internal feud in the Irish 

and are stem denial that hia country was Among them was escaped rides of the Irish border for ques- National Liberation Army, 

alleviate I ‘soft on- terrorism'. Mate prisoner Paul Kane, tloning in connection with a Mr Haughey was opening a 

Mr Haughey said recent events arrested on Thursday for the series of murders. He »nd his debate on an amendment to an 

in Ireland had emphasised the third time this week after confu- gang have been sought in a earlier Extradition Act which 
need for a dear and. unequivocal rion over extradition documents nationwide operation in connee- to provide safeguards for 

demonstration, of his country's from the UK. tion with the kidnapping of Dub- Irish citisens being extradited to 






Continued on Back Page 


and required radical changes, 
particularly in the centralised 
system of economic manage- 
ment. Back Page 

31st Tube Are victim 

A victim of the King’s Cross 
Tube fire died in hospital, bring- 
ing the death toll to 31. Soho 
fireman Colin TownsLey, who 
cued in the fire, was buried. 

Wo Zircon prm a a rthmt 

The Government came under 
attack after saying no-one would 
be prosecuted over the Zircon 
spy satellite affair. Plage 4 

Philippines calamity 

Philippines President Corazon 
Aquino declared a state of 
calamity In 11 provinces after 
Typhoon Nina brought 880 
deaths. Peace feeler. Page 2 

Massacre condemned 


rose above $1.80 for the first 
time in 5Vi years. The FT Ordi- 

FT Index 

Ordnary Share, hourly 
movements 



Eurotunnel flotation 
meets poor response 


Ershad imposes 
36-hour curfew 





BY RICHARD T0MKM8 

THE OFFER for sale of shares in research produi 
Eurotunnel, the Anglo-French Rogeraon; Emote 
group building the Channel ton- ing consultant, 


d by Dewe 
nel’s market- 
earlier ym* 


BY SAVED KAMALUDOM IN DHAKA 

PRESIDENT Hossain Mohammad fT 


Nov 1987 


nel, has met with a poor month indicating that nearly 
response from investors in the 600,000 people in the UK felt cer- 
UK, it emerged following the tain they would buy the shares. 

^ mlrket ^ 

y ' the disastrous response to the 

Application forms were still British Petroleum issue are 
being counted late last night but thought to have deterred many 
it seemed possible that up to 20 investors from applying. 


COJTUn ^ un «- °¥5 me ract tnat imposed a 36-hour curfew and 
more than 100,000 people in the banned all strikes and anti-gov- 
UK and a similar number in eminent protests. 

France have applied for the ■ President Ershad, facing 
snares does not suggest to me mounting opposition protests 
Sif a* ousting him from 


printing about the respon se." power, said h 

Dealings in the shares begin in £ssurae eme: 
London and Paris on Thursday, the coi 


power, said he was forced to 
assume emergency powers 
because the country laced inter- 


■ 7 tea A Br ahmapu tra 


Ran gpur 



ssisasaajssf ^ ssl-bsj * 


BRITAIN'S building societies 


Zimbabwe Premier Robert be allowed 

Mllffnho mnriixnmH <1°“* tO tlUTI to wb 


^dbeteftto^Srhte 

nllbe met in fufl. might out to be fully 

Of the &770m worth of Euro- 


5®“™*^ J0J* the issue does nal strife, insecurity and eco- 

tum out to be undersubscribed, nomic danger. 

there is a strong likelihood that • Mr Ershad will make a 


lllii < 

Calcutta 


ft KaMni*% 

vl 


tad will 


Mugabe condemned the massacre ™f n - to tunnel shares being sold, just The firm said: “The Investment 

of 16 whites south of Bulawayo mort ^* e lend ' over £353m worth were offered criteria were noveL Given the 

as “unbridled savagery." Page 2 lng - Hack Page ^ the UK, the same again in crash and the BP issue, commen- 

JAPANE8E Prime Minister Prance, and ti» remaining £63n» tators were hesitant about rec- 
" ‘ " ‘ Noboru Takeshi ta warned his worth in other international onunending it wholeheartedly, 

people that moves to open “**!***• . __ ■*£ **“* throu * h 1x110 

ja nan's markets might mruire The response in France is retail mar ket, 
them to “forbear and ensure” thought to have been si milar to The shortfall in applications 

thatmthe UK but the position will not stop the Channel Tunnel 
unpopular measures. Pages was unclear test night Wise being bufitbecame any unsold 
WEST GERMAN'S trade sur- shares there were distributed shares will be allocated to the 

? >Ius fell by about DM1.4bn through hundreds of high street underwriters. However, it is a 
&467.4m) to DM10.1 bn last banks and the figures had not psychological blow to Eurotun- 
month because of rising imDorts. been collated. *n»e international nd because it suggests a lack of 


5 he .u St< ^! rfl L 0 P :en at a diaCount ntutonal broSdcart on Sktartay ( i 

totheKOpaffo-pnca evening to explain the reasoru 

It is thought that most private that led to the proclamation of 
Investors in the UK will holdon MPrt—VSM 

to their shares because a high that he will offer anyconstitu- 

proportion bought them for tile tional solution acceptable to the weeks ago. Ministers acknowl- 
accompanymg tr avel p erks. The opposition, short of resigning his edge that the widespread stop- 
/“Ef* 1 ?' 1 ™ ***■*?* 00 “* post. He seems to have the back- pages, the longest in the coun- 
price Is likely to come &un fasti- Ing gg the military leaders who try*s history, have shattered the 
tlltional Investors selling Off urrmlH rwfw Mm nnt tn ham ♦*» HomMtir amnniw 


as “unbridled savagery.” Page s 

Lebanon hostages freed 

Two French hostages were 
released in Moslem West Beirut. 

Page 2 

Tamils kffl seven 

Tamil rebels fired on an Indian 


Noboru Takeshi ta warned hia I worth in other international onunending i 
Twnnia (h.t m n ««> I markets. and that ted 


unpopular measures. Page S 


tutional investors selling off W ould p 
unwanted underwriting stodc. leave tn 
Warburg Securities is confi- ouraMv 

ni I .Li. n.j _ 


him not to have to domestic economy. 


pniWwii scene ifishon- 


In Dhaka it is widely believed 
that President Ershad had little 


** ab l® to One possibility is that Presi- choice but to take action if he 


AIDS cases up sharply 

Reported AIDS cases in the 
world have nearly doubted, to 
68^17, in the past year, the 
World Health Organisation j 


mont * 1 " became of lUng imports. 

BRITISH CALEDONIAN 


CALEDONIAN J fully 


banks and the figures nad not pavdiologic&l blow to Eurotun- 
been collated The international nel because it suggests a lack of 
offer is believed to have been confidence in the project among 


.Group urged the Office of Fair 
Trading not to refer to the 
Monopolies and Mergers' Com- 
rniasioa any partial offer for it 
from ScanmnaviaR Airlines Sys- 
tem. Page S; Determined to 
Join the Mg five, and 8A8 
results. Page 10 ' 


fully subscribed. institutional investors and the 

In the UK, between 100,000 public alike, 
and 150,000 applications were Mr Alastair Martian, Eurotun- 


Mr Canada halts IRgMs ' - results. Page 10 ~ 

Air Canada halted all flights as ACORN COli^DTER, the Cam- 
maintenance staff began a strike bridge computer company, is to 


in Canada. Page 2 stop selling c ust om-made j 

nets for individual end-t 

Prison for stamp sales , withthe iossofeo jobaPng. 

National Postal Museum curator HARLAN P AND WOI 
William Wellstead was jailed for state-owned Belfast shipbui 
two years at the Old Bailey for is expected next week 
stealing and selling museum announce annual opera 
stamps to pey hia debts. losses of about £58m agi 

£28Am last year. Page 4 

BflOO film cleared HOUSING Finance Carp 

South African censors unexpect- independent invests 

edly passed Sir Richard Atten- ***& «Wng finance for vc 
borough’s film Cry Freedom, t«y housing associationi 
about black nationalist leader expected to make its first h 
Steve Bfko, for screening. Page 2 °* between £25m and Si 

next weric as part of a three- 

S African spy Jafled pian to «ise&bn.itega4 

Zimbabwe jailed a South African ^^ 1°. 

woman for 25 years far qiying. Amta s largest min in g, flnan dsl 
The judge said she dese rv ed the- *5° tndusmal group, report 
death sSrtence. If P« ^ 

; tax profits to R572m (£16 

Snicfde attempts fa!! **•”“ „ , , 

A man was taken to a Taunton Its 

hospital after seven suicide 
attempts. He threw Mmself at 

, un ^ r *,^1 SelSSch eSs comi 
and med to strangle himself and whic h holdsTSSrtiketa 
leap from a window. Back Pu*e ^ 

England tottering SEEBE, controls, enginee 

England were in a shaky pari- and safety equipment gr< 
tion after three days of the first increased interim pretax pr 
test against Pakistan at Lahore, by 2fe times to S50.7m. Pngs 
and Chris Broad was repri- — wrr%ana 
manded by the manager for not * t2< 

leaving tlw crease when given glABm) ted for the emts tan 
out. Sawes: England 175 and 47 25 par rent of its Australian 


r Com- received. This c ontras t s with nel’s UK co-chairman, said he on Derember 10. 
for it _ , 

® Company to buy three 
S disused power stations 


wflii ^ left dent Ershad may offer to hold 

unsold, but buyers will expect to parliamentary 
receive a discount on the offer time next year 
price in exchange for their sup- ^ sg-hoii 

, ... imposed on the 
The price at ^Uch the biraera tai*Dhaka. ai 
agree to take the stock will effec- cities including 
tively provide the opening price port towns of 


dent Ershad may offer to hold does no 
parliamentary elections some oppositif 
tune next year. The opposition movement, led 

The 36-hour curfew was by Mrs Sheikh Hasana, Awami 
imposed on the capi- League jnesident. and Mrs Khal- 

tal, Dhaka, and several other eda Zia, Bangladesh Nationalist 
cities including the two southern Party chairman, appears to have 
port towns of Chittagong and succeeded in forcing President 
Khulna. All industries and Ekshad to acknowledge that he 


does not want to acce 
opposition's demand to res 
The ODDOSitian moveme 


offices would remain shut during faces his worst political crisis 
the curfew until Sunday. Anyone since taking power in March 
v iolatin g tb<> emergency orders 1982 through a bloodless military 
could be jailed far up to three coup. 

years and fined. while both opposition leaders 


years and fined. While both opposition leaders 

President Ershad also ordered are now under house arrest, and 
suspension of all basic civil hundreds of other activists in 
rights and said courts were detention, the anti-government 
barred from trying any cases protest has begun to spread into 
related to them. Earlier yester- the countryside- 
day President Ershad closed Opposition sources said police 
Dhaka University, one of the arrested several more political 


SEHBSEr aisusea power st 

■ HARLANP AND WOLFF, BY LUCY KELLAWAY 

1 Is^expMtoLp^nSt ^week^to INDEPENDENT .Power and the CEGB for supplies have not 
announce annual operating Ener^a new company chMred yet been high enough to make 
losses of about £58m against b J “*» former head of the schemes attractive. 

1 £2&£m last year. Page 4 British Coal, has agreed ta prin- 


Mr Casfikis said ne 
with three Welsh area 
sale of the electricity • 


tiations 


centres of po' 


opposition. leaders soon after the declaration 


A separate order issued by the of the emergency yesterday. 
Ministry of Home Affairs banned Among those detained were for- 


body raising finance for volun- erating Board, 
tary housing associations, is _. ii iiiiiinml 
expected to make its first issue, T fe 
of between £25m and £50m, 

next week as port of a three-year tncity to Welsh area boards, 
plan to raise fiZbn. Page 4 The deal, which is expected to 


British Coel, has agreed in prin- Faced with a shortage of gen- advanced stage. Under terms 

.dple to. buy three disused coal- erating capacity, the CEGB has agreed, the project would repay 

HOUSING Finance Corpora- (fired power stations in Wales been negotiating with about five investors in about five years, a 

tion, independent investment I from the Central Electricity Gen- private groups over power sta- significantly shorter period than 

erating Board. tion building. Private supplies to associated with building power 

-L. Srid «• negligible, coming stations from scratch, he said. 

The company will operate the mmiua w _ ” _ 


Electricity Gen- private 
tion bui 


criticism of any govern- man. Police said several other 


from surplus generation by 
*5® eiec " industrial users or small stations 


men t decision. 

President Ershad assumed the 
emergency powers to forestall a 


The three stations, at Rogers 72-hour general strike called for of 


leaden had gone into 


This is the second time a state 


icy has been declared 


tricity to Welsh area boards. atone, Connah's Quay and Roose- Sunday by the country’s 21 in Bangladesh. The country's 

*■**“ cote/have a combined capacity opposition parties as part of a firrt president, Sheikh Mitfbur 

w £ so SP c ^- n¥ ,i rt ■ n'.iiitju'i °f 420Mw. They have been in national camp a i g n to oust him Rahman, declared a state of 

sooth SU”cSSl%gS?TO!j <*£.wSJ§^5S3£ — 

i«ndal venture in tne UK, accounting biahing the three stations would - Mr Gasfikis said about half the 


STAR DINING 

A Michelin star is the 
highest accolade for a 
restaurant. But who 
decides ? 

PI 

FINANCE 

Afore troubled times at 
London Life 

PVI 


TRAVEL 

Albania opens its doors - 
just a little. 

FIX 

PROPERTY 

The delights of 
Herefordshire 


HOWTO 
SPEND IT 

...on Christmas presents for 
awkward customers 

PXV 

BOOKS 

FT critics choose their 
publications of the year; 
plus two competitions 

PXV I 


* OtsfiMs, a rc hite c t 
: scheme, said- refur- 


xnothballs for several years. 


which began two-and-a-half emergency In 1974, 


Afnras largest mining, financial venture in tne UK, accounting biahing the three stations would - Mr Gasfilris said about half the 
and Industrial group, reported a for up to 10 per cent of Welsh cost about £86m and create a coal would be bought from Brit- 
16 per cent fail in. Interim we- electricity suoplies. and will maximum of 6,000 jobs over two ish Coal at a price that repre- 


erim nre- 
(£16&i). 


16 per rent fall I n m terim ■ nta- electricity supplies, and will maximum of 6,000 jobs over two ish Coal at a price that repre- 

tax. profits to R572m (£162m). reflect tne CriGB's increased years. • seated a "good unprovement f on 

10 willingness to accommodate the The new company will be the terms offered to the CEGB. 

GRANADA tv private sector in the light of gov- financed in part by equityfram The remainder would be bought 

Sur raised its Wd foTriSS P»“» to TP&** the P^atoi^estora. Wh 

ElecSonics Rentals to £260m, mAnaj.. were 


electricity supplies, and will maximum of 6,000 jobs over two ish Coel at a price 
reflect the CEGB’a increased years. • sen ted a “good Impro 

willingness to accommodate the The new company will be the terms offered to 


to £250m, “““ 
of Philips, 


winning the backing of RiiHpa, 
the Dutch electronics company 
which holds a large stake in ER. 

BackPage 

SEBBE, controls, engineering 
and safety equipment group, 
increased interim pre-tax profits 
by 2 Vi times to S50.7m. Page 8 

THORN BO launched a $26. lm 
(£14fim) bid for the outstanding 


dustzy. - Development Agency and Welsh dent sources. He said there were 

Private' companies have been area boards, although the bulk of no {darts to Import coaL 
de to generate power in the UK the funds will come from a can- H aa lam attark s CKGB’s coal 
nee 1982, but prices offered by sortium of banka. - prices fallacy, Paged 


City worried by low turnover 

m MfM H0LKHTDN AND IIIPICN HOLER IN LONDON AND JANET BUSH M MEW YORK 


for four; Pakistan 392. 

...that ye be not judged 

Italy's government introduced a 


slioot. Page 8 

DEBBIE MOORE is 

chairman of the USM-! 


CONCERN is rising in the CStty 
that the 'lack of turnover in 
equity and gilt-edged markets 
may lead to much lower levels of 
profitability and farce staff cuts. 

Senior executives of some 


London Stock 
Exchange 

auras Traded volume (mMons) 
1000 


draft law under which judges 
could be fined for making mis- 
takes. Judges oppose it 

MARKETS 

DOLLAR 

New York lunchtime: 

DM 1.6525 
FFr5.6285 
SFr 1.356 
Y133A5 
London: 

DM 1.654 (1-6686) 

FFY 5.625 (5.6625) 

SFr 1.3575 (1.8686) 

Y133.65 (134.55) 

Dollar index 95.4 (95^) 
133.75Tedcyo dose Y 

US LUNCHTIME RATES 

Fed Funds 6%* ~ 

3-month Treasury Bills: 

yield: 5.79* 

Lcavg Bond: 97^ 
yield: 9.15 


apple Group, but keeping the forge searrtt tes h ouses are ^pre- 
dance studios that made her *fiing that profits may foil by 
famous and rights to the Pineap- 40_pHr cent or more over tire 
pie name. Pages 


I STERLING 


New York: Comex Feb latest 
$491.8 

(guidon: $47X5 (477 .76) 

CSMpdcmn 


New York lunchtime *1811 
London: *1.81 (1.7945) ■ 
DM 2996 (same) 

FFr 10.18a HO. 1625) 

SFr 2.4575 (2456) 

Y242.0 (24L5) 

Sterling index 76 (75.7) 

LONDCHf MONET 
3-month Interbanfc 

closing rate 9* (85) 

NORTH SKA OIL 

Brent 15-day Dec (Argus) 
$178007-775) 

STOCK INDICES 

FT-SE 100 1851.6 (-9.1) 
FT-A long gut yield index: 

High coupon: 9.33 (986) 
NewYork Jundmme: 

DJ Ind Av 1^9.16 (-7.79) 


-1386) 


coming year. 

Although not all agree with 
the magnitude of the contraction 600 
in profitability, many endorse 
the view that, with business fall- 
ing off and overhead expenses 
constant^ staff cuts, reductions in 41X1 
salary levels,' the retreat from 
leas prafitabte markets might be 

needed to ensure acceptable 200 , 

profits in tiie year ahead. Oct 1987 Nov j 

Financial markets ended the 

week on a mixed note. The dal- 10 when it hit a record low of 
lar traded at dr near historic DM18475 and . traded as low as 


lows, although business 


Y 133. 10. At midsession in New 


modest, as currency markets York, It stood at its day’s lows of 
continued to be concerned over DM18620 and Y18380. 
the outlook for Internationa] co- The dollar's weakness had lift- 
operation to stabilise the US cur* tie impact on the equity market, 
rency. which was quiet, but under- 

'. The dollar yesterday traded at mined US Treasury bonds. The 
its weokesTtevel since November Treasury’s benchmark 8875 per 

- ■■■■■■■ CONTENTS — 


cent 30-year issue had fallen 
inane than one point by midses- 
skm to yield 9.17 per cent. 

The pound closed in London at 
a 6% year high at $181, but was 
unchanged against Thursday’s 
level against the. D-Mark. Share 
prices were up modestly on a 
week ago. The FT-SE share 
Index closed 9.1 points lower at 
1,651.6, bat was 1.1 per cent 
higher than last Friday. The FT 
Ordinary index was 68 points 
lower at 18088 . 

Securities bouses are con- 
cerned leas at the level of mires' 
than the level of turnover. Stock 
exchange figures suggest that 
the value of daily turnover this 
week averaged about £550 tn. 
This compares with daily turn- 
over in pre-slump days of closer 
to £lbn, and turnover during the 
days immediately after the crash 
in equity prices of £2.5bn to 
SSbn. 

Continued oa Bade Page 

Stock market report and 
money markets. Page 12; Lex, 
BackPage 



* •* — 




WKh # I 






OmbfibEvs A shadowy war — — 6 
Man tn ^ie News Paul Mugnaioni, CHas- 
grw's^ departing director of housing ... — 6 
Editorial comment; Exchange rate con- 
fusion — 6 


Execatlre share option schemes: 

Worth taking the knocks — 7 

Lloyd's of London: Binging in the 
changes — 7 


A little 
treasure 


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«££ooTs-S*«— ***** Tara. HTWSi TMam east 


§ 

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Pieces cfd^tae onea 
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geared awards capital 
ffowth aid together they 


coverfoe fewestmeitt 
oppomniaes of the world, 
ff you've been scaring the 
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2 


Financial Times Saturday November 28 1987 


OVERSEAS NEWS 


Brazil Congress 
in revolt over 
fiscal package 


BY IVO DAWNAY IN RIO OE JANEIRO 


THE Brazilian Congress is In 
revolt against the government's 
fiscal package, now imminent, 
aimed at reducing the country's 
soaring public sector deficit 

With the details of the mea- 
sures yet to be published, politi- 
cal parties of both left and right 
have attacked the plan, for oppo- 
site reasons. 

On Thursday, a broad coalition 
of interests gathered more than 
187 signatures from Congress- 
men opposed to the plan. This Is 
enough to mount a constitu- 
tional challenge to the govern- 
ment's right to press ahead with 
the proposals. 

The package envisages a sub- 
stantial revision of tax rates and 
the introduction or a wealth tax. 

The critics say any fiscal 
changes would pre-empt clauses 
now being prepared for the new 
constitution on reform of tax- 
raising powers and procedures. 

But behind this lies more sub- 
stantive disagreements over how 
to tackle Brazil's economic crisis 
that divide left and right. The 
right wants the emphasis 
switched from new tax-raising to 
cuts in public spending, while 
the left wants the opposite. 

Both sides can unite, however, 
over the need to give priority to 
Improving the efficiency of a tax 
administration which allows 
many to evade payment. They 
also agree over the need to 
lighten the tax load in Certain 
sectors to encourage Illegal busi- 
nesses bade into the formal econ- 
omy. 

Both President Jose S&raey 
and Ur Lulz Carlos Bresser Per- 



Jom Barney: placed In 
a quandary 

eira, the Finance Minister, are 
now in a serious quandry as to 
how to precede. Until now, the 
president has governed through 
decree laws, but the Congress 
has a complex case to argue that 
he cannot act unilaterally on 
measures that would pre-empt 
constitutional decisions. 

Mr Bresser claims that urgent 
steps have to be taken Immedi- 
ately to raise government reve- 
nues in the light of a growing 
public sector deficit now esti- 
mated by some to be more than 
6 per cent of gross domestic 
product. 

Newspaper reports of the tax 
increases, which, will fall heavily 
on the wealthy, have fuelled a 
rapid rise In the value of the 
"black* dollar as savers have 
sought to escape the tax net. 


Ground staff strike halts 
all Air Canada flights 


BY DAVID OWBI IN TORONTO 

AIR CANADA halted flights at 
midday yesterday because of a 
fast- spreading strike by 8,500 
unionised ground workers. 

Toronto-based members of the 
International Association of 
Machinists and Aerospace Work- 
ers walked out on Thursday. The 
strike has since spread to Mon- 
treal, Ottawa and Vancouver. 

Mr Pierre Jeanniot, the com- 
pany's president, said that Air 
Canada had decided to halt 
flights because of the need to 
assure "the safely and integrity 
of operations*. 

He added that the airline 
-would continue to operate a few 
flights with management person- 
nel if necessary, "to avoid 
extreme hardship’ for passengers 
unable to find alternative means 
of travel. 

Air Canada’s decision comes 
about three weeks after union 
members took a strike vote. The 
main issue in the dispute is a 


union demand for the indexing 
of pensions. 

The threat of rotating wal- 
kouts has cost Air Canada a 
reported CSl.ISm (8490,000) a 
day in lost or cancelled bookings. 
Canadian Airlines International, 
Air Canada's main domestic 
competitor, said on Thursday 
that Its 200 flights in and out of 
Toronto were booked solid. 

No new negotiations between 
the two sides have been sched- 
uled since talks broke down on 
November 15. Yesterday, how- 
ever, Mr Jeanniot offered to 
return to the table while stress- 
ing that ‘indexing is really a 
blank cheque* which would cost 
the airline an estimated C$70xn a 
year if extended to all employ- 
ees. 

• The Federal Government has 
said that it has no plans to inter- 
vene in the dispute since the sit- 
uation does not constitute a 
national emergency. 


Opposition wins in 
Suriname election 


UNOFFICIAL results show vot- 
ers delivered a stunning rebuke 
to Suriname's military dictator- 
ship, giving a three-party coali- 
tion a landslide victory in the 
country's first national elections 
in 10 years, AP reports from 
Paramaribo. 

Suriname, a forma 1 Dutch col- 
ony, has been ruled by a military 
government since 1980, when 
Commander Desi Bou terse's 
band of army sergeants seized 
power. 

The unofficial but nearly com- 
plete results in Thursday from 
seven of 10 voting districts indi- 
cated that the opposition Front 
for Democracy and Development 
had won at least 40 of the 51 
seats in the National- Assembly. 
The leaders of the front said 
had not expected to win by 
a wide margin in Wednes- 
day's election. 

Commander Bou terse and his 
2 , 000 -man army are not expected 
to yield full political power to 
civilians. He was an army ser- 
uit when he led the 1980 coup 
at toppled Suriname's parlia- 
mentary government five years 
after independence from the 
Netherlands. 

Commander Bouterse said at 
army headquarters Thursday 
that the army would respect the 
outcome of the 


vote, but "regard- from the 


less of the results, the revolution 
will continue”. Bouterse refers to 
his government as a "democratic 
revolution". 

He has promised to return 
Suriname to democratic rule 
under a new system that will 
guarantee military participation 
In government affairs. 

Under Suriname’s new consti- 
tution, approved in a referendum 
September 30, the military gov- 
ernment will be replaced by the j 
National Assembly and a State 
Council. The Assembly will elect 
the president, who replaces the 
prime minister as the country's 
chief executive. But the Assem- 
bly will not have the power to 
make laws. That power will 
belong to the State Council. 

Commander Bouterse has yet 
to reveal how the State Council 
will be chosen. Voters know only 
that a representative from the 
army - probably Bouterse him- 
self - will be a member. 

There was a heavy turnout 
among the South American 
nation s 195,000 eligible voters. 

Forty-seven observers from 
five continents monitored the 
elections. "I am very satisfied 
with the democratisanon process 
and the way the elections have 
been organised and run,' mid Mr 
Willem Vergeer, an observer 
Netherlands. 


S African 
censor 
passes 
Biko film 

By Anthony RoUnaon 

Johannesburg 

A SURPRISE decision yes- 
terday by the South African 
'censor means that local - 
audiences of all races will , 
be allowed to see "Cry Free* . 
dom",the film about the life ■ 
of black consciousness ■ 
leader Steve Biko. 

The controversial film, 
shot on location In Zim- 
babwe by the British film 
director Sir Richard Atten- ■ 
borough* deals partly with , 
the black leader who died in . 
a Pretoria police cell in > 
1977 JUS death came after - 
after a 1,200 km drive, 

naked and shackled in a 
police Laadrover, bom Port 
Elisabeth where he had 
been interrogated for days 
by the security police. 

The film also explores the 
relationship between Hr 
Biko and Mr Donald Woods, 
former editor of the Daily 
Dispatch newspaper who 
was banned, and subse- 
quently escaped from South 
Africa, after befriending 
the black leader and allow- 
ing him to put his views 
across in the dispatch. 

The idea of a film about 
Hr Biko having been made 
by whites, and the allegedly 
disproportionate emphasis 
on the friendship between 
the two men, led to denunci- 
ations of the film and its 
director from black con- 
sciousness and other black ■ 
critics. There is little doubt . 
however that the film will 
attract enormous interest ■ 
in a country which in so 
many ways has been 
deprived of its history by 
decades of censorship, ban- 
ilagi propa ganda 

South African censorship . 
rules, with their Orwellian - 
overtones, like those which . 
forbid publication of the 
words or the photographs . 
of banned persons without ■ 
permission, still remain In ■ 
force. But the censorship of. 
books and films has beoom- . 
ing deddely leas oppressive 
in recent years under Dr 
u»— «, Coetzee, the director 
of publications whose com- 
mittee reviewed the film 
this week, and gave it a cer- 
tificate for general distribu- 
tion. 

Just over a year ago for- 
merly racially segregated 
cinemas became multi-ra- 
dal, partly due to p re s s ure 
from US film distributors 
who threatened to atop 
sending films to South 
Africa unless they coaid be 
shown to multi racial andl- 
ences. 

The censor also allowed 
distribution at Sir Richard's 
earlier film on the life of 
Ghandl, which included 
scenes of him being thrown 
off a train by a white guard 
whilfe atilt n a young lawyer 
living in South Africa. At 
that time however cinemas 
were stUl segregated and 
8ir Richard waa attacked 
for allowing his film to be 
shown in this way. His lat- 
est fUm promises to be seen 
by a much wider black audi- 
ence flocking to cinemas 
which are still mainly in 
white 


Nigerian leader 
criticised 

GEN OLUSEGUN OBASANJO, 
the former Nigerian presi- 
dent, has lent support to crit- 
ics of the present military 
Government’s economic poli- 
cies In a rare speech on 
domestic affairs, Reuter 
reports from Lagoa. 

In a carefully-measured 
speech on Thursday bight, 
Gen O b a Ba n jo also chided 
President Ibrahim 
without refering to Mae. 
directly, about the detention 
without trial of his p redcceo - 


Gen Obaaanjo, who left 
office in 1979, attacked Presi- 
dent Bsbangida’s Western- 
backed plan for economic 
recovery. 

Tt appears to qte that we 
now have a st ru ctu ral adjust- 
ment programme which seems 
drastically to reduce the liv- 
ing standard of all of 

productive workers except 
speculators and commission 
agents,” he said. 


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Pretoria gold given new underground home 


BY ANTHONY ROBINSON IN PRETORIA 


NOWHERE DOES gold dug from 
the mines return underground to 
the vaults more quickly than in 
South Africa where the gold- 
bearing Witwatersrand is less 
than 50 kms south of the capital 
Pretoria. 

But over the last few wads 
South Africa's gold reserves have 
found a new home. The 
reserves^ 6.212bn fine ounces 
of them, have been transferred 
from the Reserve Bank's old 
headquarters Church Square - 
under the eagle eye of Boer Pres- 
ident Paul Kruger’s statue - to 
the vaults of a new 32-storey 
black marble and glass sky- 
scraper 1km away. 

Right through the worst of the 
South African financial crisis 
work continued apace on the 
R117m (520.9m) addition to the 
Pretoria skyline. 

In Us way the new high-tech 
Reserve Bank' became a symbol 


of that dogged Afrikaner deter- 
mination to press ahead - despite 
the rush for the exit by foreign 
banks in August 1986 which led 
to the partial debt moratorium 
and re-mtrodaction of the two- 
tier Rand system. 

On Thursday night it was offi- 
cially opened by President P W 
Botha during a glittering ban- 
quet which was the highpoint in 
Pretoria's social calendar. As 
Governor Gerhard de Kodc noted 
in his welcoming speech "dealing 
with the debt crisis was child's 
play compared with getting the 
prcrtocol right tonight . 

What happened next revealed 
much about South Africa's 
search for new economic and 
financial friends to replace disln- 
vesting traditional banking part- 
ners such as Barclays, Standard 
Chartered, Hill Samuel and 
America's City Bank and the 
cold shoulder from the IMF and 


other institutions. 

In his best puckish style the 
governor turned to his guest of 
honour, Mr Chans Chi-cheng, 


the governor of the uenoai can* 
bf China in Taipei, recalling how 
Taiwan now had over STubn of 
reserves he proposed - "you have 
the gold. We have the vaultajet's 
make a deal". 

It was a good line and the 
audience loved it, especially as 
he followed up by confirming 
South Africa's own reserves 
had indeed between transferred 
to the high-tech security of the 
new vaults. "Yes its true, Japple 
Jacobs (the deputy governor) 
and myself earned a small bar 
each, last weekend,* he quipped. 

In fact the reserves have mare 
than doubled over last year dur- 
ing which time violent black 
protest has subsided through a 
mix of co-option and coercion 
and South Africa has received 


what Dr de Kock described as a 
degree of “grudging admiration" 
from foreign bankers. 

And yet, it was those eminent 
bankers and Institutions who 
were Invited but declined - such 
as the IMF or Dr Fritz Leutwfler, 
the former Swiss National Bank 
chairman and erstwhile debt 



isolation by their absence. 

As Mr Harry Op p enhe iro er. the 
doyen of South Africa's private 
sector, reminded his audience 
the end of South Africa's isola- 
tion, of sanctions and disinvest- 
ment requires political solutions. 

President Botha, gratified no _ _ . ~ 
doubt by the absence of several Kodc FucsJsb style 

of his domestic betas notr such chief executive of National 
as Mr Andries TreunUcht, right- Bank(fonnerty Barclays Bank! 
wing Conservative Party oppoei- listened with suitably oriental 
tion leader, and Mr Chris Ball, Inscrutability. 



Squatters blamed for mission massacre 


BY TONY HAWKINS IN HARARE 

ZIMBABWE Home Affairs Minis- 
ter Enos Nkala yesterday blamed 
local squatters for the "heinous 
killing" of 16 whites in the Hope 
Fountain mission area 30km 
south of Bulawayo. 

The city is the capital of the 
south western province of Mata- 

beleland, where anti-go vemnent 
rebels have been active since 
1982. The inter-denominational 
group of lay missionaries, who 
were hacked to death, ran a co- 
operative farm. 

Mr Nkala gave the first official 
Zimbabwe government confirma- 
tion of the massacre hours after 
the story had been carried by 
foreign news media. 

He said a local squatter leader, 
now In custody, had warned the 


they 

_ to have their next meal", 
minister said the killings 
had been carried out by a group 
or about 20 anti-government dis- 
sidents led by a man called Gayi- 
gusu, also known as Morgan. 

Thirteen of the dead were Zim- 
babwe citizens, two were 
Americans and one British. They 
included two teenage girls, one 
small boy and two rabies. Two 
children managed to escape. The 
bandits left a note, in broken 
English, urging Zimbabweans 
not to support capitalist-oriented 
western countries and describing 
British prime minister Margaret 
Thatcher and Zimbabwean pre- 
mier Robert Mugabe as enemies 
of the people. 

The victims were "innocent 


people talking about peace", Mr 
Nkala said, but they had been 
murdered by dissidents seeking 
to exploit squatter greivances far 
political reasons. 

While no political accusations 
concerning the killings have yet 
been made, there are fears that 
the massacre could adversely 
affect the proposed unity pact, 
thought to be imminent, 
between Mr Mugabe’s ruling 
ZANU-PF party and Mr Joshua 
Nkomo's opposition ZAPU. 

Mr Nkala said the massacre 
had its origins in tensions over 
land rights in Zimbabwe. The 
Governor of Maiabeleland prov- 
ince had gone to the area only 
last week to discuss the land 
problem with disgruntled squat- 
ters whose situation has deterio- 


rated as Matabeieland faces its 
sixth successive year erf drought. 

The Governor had told the 
squatters that they would be 
removed if they tried , to take 
over the mission's land for graz- 
ing and it was this that re sult ed 
in threats against the lay mis- 
sionaries being made by the 
squatters leader. 

The minister said a special 
anti-bandit unit was being 
deployed to track down the 
squatters, but mission sources 
complained there had been a 
long delay before the security 
forces reacted to calls for help 
after the massacre early on 
Thursday morning. 

. Zimbabwe's shadowy war. 
Paged 


Ozal maintains clear lead 


BY DAVID BARCHARD IN ANKARA 


ON THE eve of to m orro w 's gen- Some of the swing to the SDPP 
eral elections, Prime Minister seems to be a reaction against 
Turgut Ozal yesterday stepped bad local government. In Ankara 
up his attack on the opposition a crowd protesting at the coal 
Social Democracy Populist Party , shortage in the capital which has 
saying that it waa backed by left many homes unheated far 
left-wing extremists including several weeks dashed with 
the outlawed Turkish Comxnu- police on Thursday as they tried 
nist Party. to reach Mr Mehmet Altmsoy, 

Mr Oral and his Motherland the dtv's mayor. 

Parra remain the dear favourites Mr Ozal has promised that he 
in the elections, the first fully will rive civil servants a "nice 
d em ocratic general elections in surprise" on the eve of the elec- 
Turkey for a decade. tion. Turkey's large and badly 

However, In the large cities, paid civil service Is one of the 
the SDPP and Professor Erdal principal sources of opposition to 
Inonu, its leader, appear to be the Motherland Party. 

* fast, though the The Prime Minister would not 


polls still show it running well »y what he was planning far 
below the 30 pm-, emit mark. civil 


servants but said the Gov- 


ernment wanted to give them 
more generous support. 

The Motherland Party has 
already taken steps to win votes 
of most key social and economic 
groups especially farmers, and 
has made strikingly effective use 
of patronage connections in pro- 
vincial society. 

The press - which b 
deeply hostile to the Mi 
Party - has been playing up fears 
about the prime minister’s 
health. Last February he had a 
triple by-pass heart operation In 
Texas and though generally fit, 
has kept election campaigning to 
a minimum in the last few 
weeks. 

Oral: -nice surprise 


Rebel officers 
offer Philippine 
peace feeler 


Danes present EC reform deal 


BY QUENTIN FEEL M BRUSSELS 

A PACKAGE of budget reforms 
for the European Community, 
Including a system of national 
payments to Brussels and cost 
"stabilisers" fra- all farm sectors, 
has been presented by Denmark 
as the bads far a decision at next 
week's Copenhagen summit. 

The compromise' plan is 
intended to balance aU the ol 
tions of member states. The _ 
includes agricultural cuts, an 
Increase in cash for poorer mem- 
ber states, and the imposition of 
budget discipline across all areas 
of spending. 

However, it contains three key 
gaps to be left for the leaders to 
resolve at their summit: how 
high to set the final ceiling on 
budget contributions; how much 
more money to put into social 
and regional spending; and how 
to calculate a continuing reduc- 
tion In Britain's budget contribu- 
tion. 

On agriculture, the paper 
drawn up by Denmark - the cur- 
rent chair m an of the EC Council 


of Ministers - simply puts bade 
on the table the same plans 
which resulted in deadlock 
between the 12 farm ministers 
earlier this week. Now it is up to 
the foreign ministers meeting on 
Sunday and Monday to see if 
they can make any further prog- 
ress. 

However, Mr Pout Schlueter, 
the Danish Prime Minister, sug- 
gests in a letter to his fellow 
heads of government that the 
key sectors - cereals and oilseeds 
- may have to be reconsidered by 
the European Commission. 

The compromise suggests that' 
member states contribute funds 
to Brussels from a new fourth 
resource based on gross national 
product, in addition to the cus- 
toms duties, agricultural levies, 
and value added tax-related pay- 
ments already made. The VAT 
element would be set at a 
notional 1.25 per cent rate, 
instead of the ID per cent pro- 
posed by the European Commis- 
sion - a concession to Italy, 


which will lose out most under a 
GNP-related system. 

. Although It Includes only a 
blank page on the British com- 
pensation, Mr Schlueter says 
three elements should be taken 
into account: that some farm of 
compensation must continue; 
that it should be reduced by the 
amount that the UK benefits 
from, the new payments’ system; 
and that all member states 
.should contribute, with- some 
alleviation for West Germany as 
already the largest net contribu- 
tor. 

The proposal errs on ' the side 
of favouring the UK position, but 
will annoy Germany and the 
Netherlands for not ensuring 
that it is ultimately phased out, 
and Spain, Portugal, Greece and 
Ireland far caffing on them to 
contribute - whereas the Euro- 
pean Commission suggested they 
be exempted. 

On the key question of how 
much more money to put into 
social and regional spending, the 
paper leaves the figure blank. 


France and Italy divided over budget 


BY JOHN WYLESM ROME 

DIFFERENCES have emerged 
between France and Italy over 
European Community financing 
and over defence following talks 
between President Francois Mit- 
terrand and Mr Giovanni Goria, 
the Italian prime minister. 

As a result, the Italian govern- 
ment is unsure about how much 
help it can count on from Paris 
at next week's EC summit in 
Copenhagen in its bid to modify 
the European Commission's pro- 
posals on future financing. 

Italian officials believe the 


s plm 

increased contributions to the 
EC budget on gross . domestic 
product would add Ecu lbn to 
Italy's payments to Brussels. The 
government is prepared for a 
substantial Increase but does not 
believe parliament would 
approve such a high figure. 

The French president gave the 
impression that he was more 
strongly in favour of the Com- 
ndssdon’s proposal. He added to 
Italian alarm by suggesting that 
Italy should be prepared to give 


up EC aid it rece i ves fra the 
underdeveloped south. 

Mr Mitterrand drew a parallel 
between Italian and British posi- 
tions. “One day Mrs Thatcher 
comes to me and says that 
Britain is underdeveloped, and 
48 hours afterwards she is 
reminding me that Britain is a 
world power. Now what hi the 
troth also about you Italians? 
Are you or are you not an eco- 
nomic power. Is Italy working or 
not wonting? Why should these 
depressed areas be financed?" 


By Rfcbani Qomlay In 

ttRMM. OFFICERS atfll on the 
ran in the Philippines after a 
foiled coup In August have 
w ri tten to President Common 
Aquino to “desist 

fron taking any hostile 
action against the Govern- 
ment” because off its “appar- 
ently sincere and honest 
efforts to imp rove on its per- 
formance”* 

The letter though unsigned 
wee endorsed by Col Gregorio 
“Gringo” who led 

the coup In which M people 
were killed, s o urc e s dose to 
the rebels said. The threat 
that Col H dnsssn would make 
another bid against the Gov- 
ernment -with' the becking Of 
sections of the disaffected 
military ha« led ''to near 
seige mentality within the 
a dministr ation at times and 
has kept the military on con- 
stant alert since the coup. 

Officials particularly fear 
that the rebel soldiers will 
try to embarrass the Govern- 
ment by disrupting the 
Dec ember summit , of Assorlsr 
tion- off South-East Asian 
Nations beads of state, which 
will also be attended by 
Pkime Minister Noborn Tak- 
eshi ta of Japan. 

The letter comes as a dead- 
line for November SO deadline 
for the rebels to surrender 
approaches after which they 
will be dropped from the 
armed forces roster, losing 
their salaries .and housing 
and pension provisions. Two 
hey rebel o ffi cers have so far 
surrendered. 

Gen Fidel Ramos, the armed 
forces chief, on Wednesday 
confirmed that feelers are 
out to the Honesan group. 

Analysts believe that the 
rebel's ability to master 
enough forces to make 
another, serious challenge to 
the gov ernm ent have sharply 
dim i ni shed for the moment. 

The death toll from 
typhoon Sisang which swept 
across the central Philippines 
on Thursday has risen to over 
850 with more feared dead in 
villages still cut off from 
M a ni la. Witnesses in the 
remote area of Soraogom said 
huge tidal waves driven by 
125 mph winds combined with 
floods from torrential rain to 
sweep away entire villages. 

President Aquino 
declared a state of 
in the area, 230 

of Manila, which will 
allow rescue w orker s to com- 


French 
. hostages 
released 

TWO French hostages, Jean 
Louis Norraahdin and Roger 
Auqiie, were released at the seaf- 
ront Summertand hotel In Mas- 
tlem West Beirut yesterday. Ren- 
ter reports from Beirut. 

They were freed by the Revo- 
lutionary Justice Organisation, a 
pro-Iranian guerrilla group 
which said its move followed 
assurances by France that it 
'would change its Middle East 
policy. 

' The shadowy group, which has 
freed five other French nationals 
in the past year, demanded that 
France change Its hostile policy 
in the Middle East and stop sup- 
porting Iraq in the Gulf war. 

Iraq hits tanker 

Iraq said yesterday its warplanes 
hit a; 
coast, 
gence 

confirm the report or identify 
the vessel, writes Joan Wucher 
King. 

Hawke’s Gulf plan 

Australia Is considering sending 
naval , divers to the Guff to help 
Western efforts to protect ship- 
ping, writes Chris Sherweil in 
Sydney,. 

Left-wing members of the rul- 
ing Labour Party fear Australia 
risks becoming caught up in the 
lran-Iraq conflict But the oppo- 
sition liberal Party backed the 
ides. 

Iran b an imp o rt ant trading 
partner for Australia, but the 
prime mi n ister, Mr Bob Hawke, 
fe a strong supporter of the West 
hern affiance. - . ' 

Bhopal relief ruling . 

A Judge in Bhopal is to rule on 
how much interim relief Union 
Carbide must pay to victims of 
the pesticides plant gas leak 
three years ago by January 11, 
before the hearings on the 
Indian Government's S3bn claim 
begin, writes K K Shuns* in 
NewDelhL 


Misntee r relief supplies. 


Howe tries to settle Gibraltar airport row 


Israeli growth at 4% 

Israel’s economy is growing at 
more than 4 per cent a year - the 
best performance for well over a 
ade - according to Mr Moshe 
Nissim, the Finance Minister, 
writes Andrew Whitley fa 
'Jerusalem. 

Mr Nissim told a meeting of 

S ambers of Commerce from 
tel and the European Commu- 
nity that the private sector was 
doing even better - expanding by 
an estimated five per cent. 
Between 1981 and 1986 growth 
averaged 2.3 per cent, barely 
matching the rise In population. 

Newsmen end strike 

A seven-week Journalists’ pay 
strike in Israel, which closed the 
state-run radio and television 
networks, ended yesterday, after 
the Journalists agreed to binding 
arbitration, writes Andrew 
Whitley in Jerusalem 
The agreement followed a 
management appeal to proride 
coverage of the aftermath or the 
previous night’s guerrilla attack 
on an army base, in which six 
Israeli soldiers died. 

Tunisia’s priority 


BY DAVID WWTE M MADRID 

SIR GEOFFREY HOWE, the Fra- fart chief Minister, are due to 
eign Secretary, started fadire on hold a plenary session today. 
Gibraltar here yesterday amid Failure to reach an agreement 
caution on both sides about pros- on Joint use of the airport would 
pects for breaking their stale- risk provoking another clash In 
merit over the colony’s airport. the ec transport council when it 

However, British officials said 

Sir Geoffrey was determined to . Britain has offered to let Spain 
try to resolve the issue, which 
has held up EC plans for air 
transport reform and set back 
negotiations on the future of the 
contested British colony. 

The Gibraltar question, in 


which airport rlghts have crucial 
al importance for Spain, 


build a domestic terminal cm the 
Spanish side of the frontier, 
allowing passengers to avoid 
glbraltar customs if they are not' 
visiting the colony. But it refuses 
Joint control of the airport on 
the grounds that this would prej- 
udice the its position an sover- 
eignty, which is tied to the 
wfshes of gibraitar's 30,000 
inhabitants. 


political Impo 

dominated his discussions with 
Prime Minister Mr Felipe Gonza- 
lez jmd Spanish Foreign Minister At the same time, sir geoffrey 
Mr E^randsco Fernandez Ordo- urged the Spanish to allow ferry 
® r had an services to resume between 

audience with King Juan Carlos, glbraltar and algecfrag, to relax 
The two ministerial delega- airspace rest ri ctions far military 
tions, including on the British aircraft and to speed up customs 
side Sir Joshua Hassan, Glbral- procedures at the border. 



(Tunisia is giving priority to res- 
toring relations with Libya, Mr 
Rashid Sfar, farmer Tunisian 
prime minister and president of 
the Tunisian parliament, said in 
j London yesterday, writes Joan 
IWucher KlngTMr Sfar was In 
Britain on an official visit, and 
[held talks with British Foreign 
Secretary Geoffrey Howe and 
MPa. 


Hag Jun Cazloe teeetvea Sir Geoffrey Howe, the XJK Fontga 
Secretary, y es te rday 


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assaa. Secoad-dm muk n|s 
Naw York NY te dSdUnd 
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Financial limes Saturday November 28 1987 

OVERSEAS NEWS 


UK NEWS 


Takeshita hints 
to open markets 


Vf IAH RODGER IN TOKYO 

MR NOBORU TAKESHITA, 
Japan’s new prime minister, has 
warned the Japanese people that 
the? might have to “forbear and 
endure unpopular measures 
aimed at reducing trade frictions 
with other countries. 

In his first policy speech since 
becoming prime minister early 
this month, Mr Takeshita said at 
the opening of a special session 
of the Diet (parliament) that 
Japan had to continue working 
to open its markets if it was to 
harmonise its economy with the 
rest of the world. 

“There may be times when we 
will have to ask the people to 
forbear and endure. However, 
Japan is one of the countries 
that has benefitted the most 
from free trade.' He hoped the 
people would understand that 
reforms were needed if Japan 
was to continue to develop. 

His comments come at time 
when. Japan is under increasing 
international pressure to remove 
barriers against imports of food 
and drink and to allow foreign 
civil engineering firms to com- 
pete in the domestic market. 
These are all areas in which 
domestic vested interests are 
powerful, making It difficult for 
the Government to act against 
their wishes. 

On the domestic front, Mr Tak- 
eshita said the Government 
would take steps to ease the 
acute problem of high land 
prices in the Tokyo area, and 



Takeshita: "forebear 
and endure** 

would make another attempt to 
reform the country’s tax system, 
last miring, the Government had 
to withdraw a bill aimed at 
establishing a value added tax 
because of widespread opposi- 
tion. 

Mr Takeshita said he believed 
there was now “a heightened 
popular awareness" of the need 
for tax reform and he planned to 
introduce proposals for consider- 
ation next year. 


Japan’s industrial output rises 


JAPAN'S industrial production 
rose 1.2 per cent in October sea- 
sonally adjusted, according to 
the Ministry of International 
Trade and Industry, Ian Rodger 
repents Cram Tokyo. The pro- 
duction index reached 130.7, 8 
points higher than in October 
1986 (base 100 in 1980). 

MitJ said nine of the 14 indus- 
tries included in Its survey 
enjoyed production gains in the 


month, led by the precision 
instrument sector where output 
was up 1&5 per cent. Miti is fore- 
casting a 8 if per cent rise in die 

production index in November- 
and a 1.2 per cent decline in 
December. The underlying 
upward trend is expected to con- 
tinue, partly because producers 
are likely to start rebuilding 
inventories. 


Mr Tolman sees 
the globe is 
kept up to date 


MR LEROY Tolman did. not 
blanch when a Texas millionaire 
asked him for a globe -of. Texas-- 
It is one of the more bizarre 
requests he tccsdls in bis career 
as chief cartographer for 
Rentage Globes, the world's big- 
obe-malting firm. 


Founded in a basement in 1980 
by Mr Luther Replogle, the com- 
pany saw a mass market develop 
for its product after the bound- 
upheavals in the Second 
War. Since then. 


Deborah Hargreaves 

reports on the V 
cartographer's work 
at the world’s largest 
globe manufacturer 


SMP 

Replogle'8 marketing push for a 
"globe in every home" has racked 
up sales of more than SlOm a 
year. 

The company is independently 
assessed as having a 60 per cent 
share of the world's globe mar- 
ket. 

This presents some delicate 
problems for Mr Tolman, who Is 
assigned the arduous task of 
updating Replogle's maps three 
to four times a year. He has 
often to tread a diplomatic tigh- 
trope over country names and 
disputed territories. 

What he dreads most is a revo- 
lution or political event that 
might change a country’s name 
as he is going to press with a 
new map, particularly around 
the Christmas boom period. 

Sometimes if a revolution is 
"iffy" and it's close to press-time, 
Mr Tolman will have to come 
down in support of one ride or 
the other. There have been times 
when this has left him with egg 
on his face. 

He cringes at the memory of a 
move by former Argentine 
leader, Mr Juan Peron, to re- 
name the city of La Plata after 
the first lady, Eva Peron. No' 
sooner was the ink dry on Mr 
Tolman's maps than Peron -was 
ousted and the name was 
changed back to La Plata. Inevi- 
tably, the company received a lot 
of letters over the next few 
months to point that one out. 

Mr Tolman says he will usually 
follow the guidance of the CIA 
or some other US government 
agency. However, when tne us 
is out of step with world opinion, 
he will stick to generally-ac- 
cepted cartographic rales. - 

This is evident In his decision 
to colour the Baltic states of Lat- 
via, Lithuania and Estonia green 

in line with the Soviet Unions 
shade, a move that has solicited 
a large from advocates 

of those states* independence. 
The US government, on the 
not accept their 
us as part of the Soviet 


graphic point for a large cus- 
tomer. For an order of say, 
10,000 globes, customers can 
have mostly what they want 

Thus Kashmir can appear 
within India's border on an 
Indian consignment of globes, 
though a good portion of it 
belongs to Pakistan. 

Mr Tolman did the same for 
Japan, which takes a dim view 
of the way Replogle depicts the 
Kuril Islands in the same odour 
as the Soviet Union. On Japanese 
language maps, they are in 
Japan’s pink. 

Nevertheless, Mr Tolman has a 
thick file of correspondence from 
the Japan Information Service, 
underlining Japan’s claims on 
the Islands. The most he can do 
is include a note in brackets 
which tells globe users the 
islands are Soviet occupied, but 
claimed by Japan. 

A similar note appears on the 
Falkland Islands. Here, the Span- 
ish name appears in brackets 
and Argentina’s claims on the 
territory are mentioned, while 
pointing out they are adminis- 
tered by Britain. Mr Tolman 
stresses he coloured the islands' 
pink to match Britain, but fay 
coincidence tills is not far off 
Argentina’s pale orange. 

Mr Tolman spends much time 
charting unrest in the world to 
stay abreast of events that may 
change a name here, a border 
there. But he also has to contend 
with deeply entrenched opposi- 
tion closer to home. 

The West Coast-based Flat 
Earth Society has addressed a 
barrage of letters to convert Mr 
Tolman to Its cause, insisting the 
idea that the Earth is a sphere is 
"entirely and absolutely false". 
Mr Telman is unmoved, but he 
has produced a square-shaped 
globe for a company that wanted 
to use it for packing. 

's plant in a leafy sub- 
makes over lm 
globes a year, retailing from 
*7.95 for a 120mm version to 
*3,600 for a mahogany-mounted, 
illuminated model. 

Output is largely geared to the 


urb of 


r rt of the Soviet 8“"“ — 

colours them In ^ Christy rnKlc^ jrnd 


on an- — 

pes on its official maps, 
jwever, Replogle is not 


from October onwards, the com 
pany is so busy it must suspend 
up to 2,000 


ibes on an over- 



an ethereal led. 

Tundra Gold Mines lid. 

In oundveftiamem ofNowmber 7 
an emor MS made in tbr feoaod 
penicacc this should have retd, 
■Overs SO year period the Limagtie 
Mmc produced 26 ntiHfoa Mta of ore 

■veflfinf .17 oerto* g*L 

Mr Bill Nickels, who bought 
the company tram Mr Replogle, 
is confident the market is grow- 
ing. He is dying to boost the 
globe replacement market "A- 
globe is not like a piece of fresh 
meat, but it is perishable,' he 
says, pointing to the need for a 
new one every so often. This is 
where Mr Tolman comes in. 


CBI rates 
plan for 
businesses 
rejected 

By Paul ChMseright, 
Propity Corre sp ondent 


THE GOVERNMENT has told the 
Confederation of British Indus- 
try that it cannot accept its pro- 
posals for. a reform of business 
rates. 

However, in a speech to a Lon- 
don conference on business rates 
from 1960, Mr Michael Howard, 
the Local Government Minister, 
argued that some fears expressed 
by business people about the 
effect of the Government's plans 
had been taken to ridiculous 
extremes. 

The Government baa already 
started the first revaluation of 
non-domestic property since 
1973 and will use this as a base 
for the introduction from 1990 of 
a uniform business rate. 

The CBI put forward alterna- 
tive rate reform proposals 10 
days ago, 22 months after the 
first green paper on the subject. 
The proposals are based on the 
idea that business should con- 
tribute to the costs of only those 
local services which benefit it 
directly. 

"We have had to teU them that 
those proposals do not accord 
with our manifesto commit- 
ments. Nor would they deliver 
the clear local accountability 
which is our primary objective. 
We cannot therefore accept their 
alternative,” Mr Howard told the 
conference, which was organised 
by Political Relations. 

The only concession Mr 
Howard made to the CBI was 
that the Government would look 
sympathetically at the possibili- 
ties of a continuing form of con- 
sultation between local authori- 
ties and business under its new 
system. 

He told 125 executives that 
those who feared a fivefold or 
sixfold increase in their rate bills 
were almost certainly wrong by 
a huge margin. 

He said many who feared the 
worst had not understood that 
the Government did not propose 
to raise more in real terms from 
the new business rate than was 
raised by the old. 

Retailers, with their higher 
rental values, could expect to 
pay more. Manufacturing indus- 
try was likely to pay less. 

Businesses in the north of 
England and the Midlands would 
be S700m a year better off, and 
Mr Howard suggested this would 
be a major contribution to brie 
lng the so-called north-sou 
divide. 

Picking up a familiar theme of 
tacking Labour-controlled local 
authorities, Mr Howard claimed 
that businesses-xn- Manchester, 
Liverpool and Newcastle upon 
Tyne could see. rate cuts of more 
.than 80 O^tt. r . : : 

Poll tax 
bill debut 
date set 

By John Hunt 

THE CONTROVERSIAL bill for 
the introduction of the commu- 
nity charge - the so-called poll 
tax that will replace the present 
local authority rates - is to be 
published next Friday. 

It is expected It will get a sec- 
ond reading in the Commons in 
three weeks and go to the House 
of Leads by Easter. 

A tough battle is expected In 
both Houses but the Government 
still expects the measure to 
!come law by the summer. 

The legislation is intended to 
introduce the new system for 
England and Wales by 1990-91 in 
one go. There will, however, be 
an exception for higher spending 
areas of London where it will be 
phased in over four years. 

The poll tax for Scotland has 
already become law. 

Last night Mr David Steel, the 
liberal leader, speaking in Roch- 
dale, made a scathing attack on' 
the proposals, saying the tax was 
designed to be unfair. He 
claimed it exemplified the Gov- 
ernment's policy of protecting 
tiie wealthy. 

Earlier this week Mr Michael 
Howard, Local Government Min- 
ister, admitted that 8m house- 
holds might face an increase of 
more than 50 per cent in local 
tax bills as a result of the sys- 
tem. 


BR fares rise 
blamed on cuts , 

By Kevin Brown, Transport 
Correspondent 

BRITISH RAIL is being forced by 
cpts in government subsidies to< 
increase fares by more than thej 
general level of inflation, the! 
statutory railway watchdog said 
yesterday. , 

The Central Transport Consul- 
tative Committee, which repre- 
sents rail users, said BR was 
unable to meet government 
financial targets purely thro 
cost savings, and improved 
dency. 

The committee's comments fol-i 
lowed confirmation from BR than 
fares will rise fay an average of) 
6.5 per cent from January ID- 
Same Intercity fates will rise by 1 
up to 11 per cent, 

Mr Lennox Napier, committee 
chairman, accused BR of using 
price increases to reduce demand 
on some services. 

Government grants to BR have 
been cut by 25 per cent over the 
past three years and are to be 
cut by a further 25 per cent by 
1990. 


Raymond Snoddy on half a century of The Dandy and The Beano 

Sprucing up Desperate Dan at 50 


DESPERATE DAN, the ronghest, 
toughest cowboy in Cactosville, 
te to be riven a facelift at the age 
of 50. He will still shave with a 
blow-lamp and eat cow-pie, but 

from early next year hJs antics 
wifi be printed by gravure rather 
than the present somewhat 

As*Dtu^who^peared in the 
first issue of The Dandy on 
December 4. 1937, would say: 
"Sufferin' catfish! 1 don't believe 
it" 

D.C. Thomson, the Dundee- 
based publisher of The Dandy,, 
which celebrates its 50th anni- 
versary next week, followed by 
-The Beano in July, has decided it 
is time to improve the quality of 
the colour printing. 

Nothing prissy like shiny- 
coated paper, of course. 

“We don't want The Dandy to 
look extraordinarily different. 
We don't want to stray too far 
from its present tactile feeL And 
we are not going to in any way 
change the content,” promised 
Mr Christopher Thomson, one of 
the many Thomsons involved in 
the running of the company 
which is as famous for not allow- 
ing trade unions across the 
threshold since the 1926 General 
Strike as for its comics. 

AH those who were not forced 
to read The Eagle, (current pro- 
Capt’n Bob Maxwell) 
appeared so much 
more respectable to parents than 
the anarchic Dandy, will find a 
very familiar world of humour 
in next week’s anniversary issue. 

As well as Desperate Dan, 
Korky the Cat has made it 
unscathed across the years 
although now Korky has help 
from nephews Nip, Lip and RRip 
and after 47 years on the front 
cover he had to make way for 



™“T decline. Over the past couple of 
« years it’s probably dropped 
between 20 mid 30 per cent' 


prietor 
because it 


The rough, tough cowboy 

Dan three years ago. 

Corporal Clott, the world’s 
worst soldier, has been marching 
on for 25 years but Keyhole 
Kate, the only girl character in 
the original Dandy, ran out of 
keyholes in 1955 and Black Bob, 
the champion sheepdog who 
rounded up crooks smugglers 
and spies, retired in 1982. 

The Beano, which sells about 
twice as many copies as The 
Dandy, has changed even less- 
Dennis the Menace and Gnasher 
are still in full flight That trib- 
ute to the British class system, 
Lord Snooty, still wears his top 
hat although The Bash Street 
Kids now seem tame compared 
with the real blackboard Jungle. 

Yet the fate that has befallen 
Desperate Dan and Dennis the 


from Cactosville rides on 

Menace is no joking matter. The 
circulation figures for general 
comics have become smaller and 
smaller in the age of television 
and video. 

According to Mr Thomson, 
Dandy and Beano reached their 
peaks at about 2m each in the 
late 1950s. D.C. .Thomson 
declines to reveal preci se circula- 
tion figures but the -combined 
total is believed to be slightly 
more than 400,000, with the 
main strength in Scotland and 
Northern Ireland and, surpris- 
ingly perhaps, south-west 
England. 

Mr Bill Rowe, marketing man- 
ager of W.H. Smith wholesale 
division, said yesterday: "The 
general segment of the comic 
market is showing a marked 


Ominously for Thomson 
the one area of the market show- 
ing real growth is comics based 
on television or toy character 
merchandising, such as Trans- 
formers 

For Mr Morris Heggie from 
Perth only Desperate Dan will 
do. 

Mr Heggie, who read every 
comic he could get his hands on 
as a child, including the Beano 
and Dandy, began at D.C. Thom- 
son as a copy boy, and was the 
scriptwriter for Lord Snooty for 
seven years before reaching the 
dizzy heights of editor of The 
Dandy nearly two years ago. 

Everybody, he believes, could 
write a couple of scripts for The 
Dandy. The real knack is being 
able to produce them year in 
year out and many of the situa- 
tions portrayed are based on 
observation. 

He once watched his young 
daughters HU up a paddling pool 
with icy water and then per- 
suade friends to jump in. 

It was turned into an adven- 
ture for The Dandy’s terrible 
twins Cuddles and Dimples. 

“I love the job. To me those 
characters are very real and l 
wouldn’t want to leave them," 
said Mr Heggie, who is 37. 

Meanwhile Mr Thomson Is 
planning a Desperate Dan cow- 
pie party for next year and an 
increased television advertising 
budget to persuade more chil- 
dren of all ages to buy the new 
gravure-printed Dandy. 

Early copies of the Dandy and 
Beano have become collectors’ 
items. A first edition of The 
Dandy, price 2 old pence, is said 
to be worth *850. 


Thatcher 
to meet 
Gorbachev 
at air base 

By John Hunt 

THE TALKS between Mrs Mar- 
garet Thatcher, the Prime Minis- 
ter, and Mr Mikhail Gorbachev, 
the Soviet leader, will be limited 
to a few hours at RAF Brize Nor- 
ton in Oxfordshire when the 

Soviet leader breaks his journey 

in Britain on December 7 on his 
way to the US-Soviet summit in 
Washington. 

The participants will not leave 
Lhe air base during the talks 
which may be shorter than the 
three to four hours originally 
hoped for. 

Mr Eduard Shevardnadze. 
Soviet Foreign Minister, who will 
accompany nr Gorbachev, will 
have simultaneous talks with Sir 
Geoffrey Howe, Foreign Secre- 
tary. The subjects for discussion 
will include the intermediate 
nuclear force treaty concluded 
between the US and the Soviet 
Union, East-West relations gen- 
erally and the Gulf situation. 

The Government is hoping 
that the stopover does not preju- 
dice the possibility of a longer 
visit to Britain by Mr Gorbachev 
at a later date. 

In a speech yesterday Mr Ger- 
ald Kaufman, shadow Foreign 
Secretary, claimed that the INF 
treaty and the pressure for fur- 
ther nuclear disarmament was 
an endorsement of Labour's 
non-nuclear defence policy. 

‘Reagan and Gorbachev, like 
Labour, are now nuclear dlsarm- 
ers," he said. "Mrs Thatcher is 
now a unilateralist nuclear 
armer." 

He said Labour had led the 
world in arguing for nuclear 
weapons reductions. 


Call to end 

north-south 

divisions 

By Ralph AHckw 

HIGH-SPEED rail links to 
Europe and a expansion of 
Manchester alrptnt are pro- 
posed in a plan to heal the 
north-south divide pub- 
lished yesterday. 

The Town and Country 
Planning Association says 
the concentration of eco- 
nomic muscle in soot h 
of England must be 
reversed -and the north 
given gr ea ter Indepe nden ce 
if the gro win g divide is to 
be reduced. 

The association, which 
lobbies foe better planning 
and the e n vi r o nm ent, has a 
■wimhership Including local 
planutng--ofncers, 


men and 

The plan, launched simul- 
taneously in London and 
Manc hester, sets oat mea- 
sures to encourage company 
head offices to move north 
and to break companies 
into amaller 

Mr David Hall, director of 
the association, said: “We 
don’t want Just more Jobs 
in the north, we want the 
right type of Jobs - in the 
growth sectors of the econ- 
omy, and a broader range of 
opportnnlties for people 
who live there.* 

Measures suggested to 
c omb a t the divide Include: 

O Boosting Manchester sir- 
port to international status. 
The proposed merger 
between British Airways 
and British Caledonian 
should be opposed unless 
the combined group agrees 
to operate a ftall range of 
| Interna t io n al flights from 
the city. 

• Up d at in g rail links to 
take advantage of the Chan- 
nel TmmeL The association 
proposes the introduction 
of a high-speed train allow- 
ing passengers to travel 
between M anch es ter and 
Paris in 4tt hours. 

• Government encourage- 
ment for rapid transit 
! systems in northern cities 
as a contribution to eco- 
nomic regeneration. 

• Strengthening the powers 
of the Monopolies and 
Mergers Commission to 
stop takeovers if they are 
not in the interests of the 
north. Big companies should 
be required to discuss with 
the Government how their 
investment strategies <*■■ 
be tailored to regional 
objectives. 

The asso ci ati on says cen- 
tral government should 
recognise the need for stra- 
tegic regional planning 
take steps to counter the 
flow of skilled workers to 
the south. 

North-South Divide. Plan- 
ning Bookshop, 17 Carlton 
Terrace, London, SW1Y SAS. 
Si 5.95 phis BOp p&p. 

Construction orders 
reach record level 

CONSTRUCTION orders, 
already at their highest 
level since the early 1970s, 
increased further during 

the three mouths to the end 
at September, E nv i ronm ent 
Department statistics show. 

Orders, excluding the 
Channel Tunnel contract, 
were 15 per cent higher 
than In the previous dree 
months and 22 per cent 
higher than during the same 
quarter of last year. 

Including the tunnel, 
orders were -40 per cent 
higher than In the previous 
quarter and 47 per cent 
above a year ago. 









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— W 

PRLDENTIAL HOLBORN 



The ftudettial Hotsom Life Landed Capital tweftnent MSm a ingle premaan whole of W» assurance contract aweung at unas at the Hofeom Senes H invest mera Funds* which are msui«e company 
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td a mWmuin value of £50 H die tatfoho cortvsts of more than one fund, the encashment ml be appted to the funds speeded m equal amounts A first partial (or a total i surrender anthm the feu low 
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4 


Financial Times Saturday November 28 1987 


Haslam attacks 
CEGB’s coal 
prices ‘fallacy’ 


Housing 
corporation 
plans to 
raise £2bn 


By Andrew Taylor 


BY MAURICE SAMIIEL80N 


SIR ROBERT' HASLAM, British 
Coal chairman, last night 
entered the debate about the 
electricity industry by accusing 
it of perpetrating a ‘fallacy" over 
coal prices. 

He said: ‘We keep hearing sug- 
gestions that the British electric- 
ity industry could save £750ra a 
year if it were 'free* to switch to 
imported coal in a big way. 

“It has recently been repeated 
so often that it is in danger of 
becoming an established fact It 
is not true.* 

Sir Robert’s remarks were 


understanding with the electric- 
ity industry that to the extent 
they can import cool from over- 
seas without a large and lengthy 
investment in new facilities, we 
will match the delivered price of 


fo ^ n ^iontinuing to do this 
and therefore the electricity 
industry and the consumer are 
losing nothing in the short ; 
term.* 

In the longer term the argu- ; 
ment was even less valid, . 
because the very low current 
international prices were not j 
sustainable, he said. 

The present low international 
price reflected the grass over' 
investment In developing new 
mines dedicated to long-haul sea- 
borne trade after the 1S73 oil 
price increases. 

But few of those investments 
were paying off. Coal mines 
were closing in Europe, in Japan, 
and Australia. 


aimed mainly at the Central 
Electricity Generating Board, 


Electricity Generating Board, 
which is also embroiled in rows 
with other parts of the electricity 
industry over its ownership of 
the National Grid. 

On Thursday, Mr Cecil Parkin- 
son accused the board of scare- 
mongering by raising the spectre 
of power cuts If the grid were 
removed from its control after 
privatisation. 

The dispute on coal was pro- 
voked earlier in the week by Mr 
Graham Hadley, CEGB's secre- 
tary, who said the benefits of 
privatising electricity lay In the 
freedom of purchasing, espe- 
cially the freedom to buy coal on 
world markets, which would 
save up to £750m a year. 

On Thursday, the CEGB said it 
intended to build a terminal on 
the Solent, on the south coast of 
England, capable of unloading 
8m tonnes of coal a year from 
oceangoing vessels, a tenth of its 
current annual consumption. 

British Coal's chairman hit 
back last night when he told 
Sheffield business people that 
the CEGB’s STSOm savings claim 
was not valid either In the short 
or long term. 

‘It has been a principle of our 


TSA to publish 
revised rule book 


BY OUR FINANCIAL STAFF 


THE SECURITIES Association 
hopes next week to publish the 
final version of its rule book and 
submit it to the Securities and 
Investments Board. Final inter- 
nal approval is expected to be 
given at a TSA board meeting on 
Monday. 

It is understood that few 
changes of substance have been 


made by TSA from earlier pub- 
lished (hafts, but the entire con- 
duct-of- business rules have been 
rewritten to make them less 
legalistic in form and therefore 
more easily understood by mar- 
ket practitioners. 

Certain minor sections of the 
rules, including the regime to be 


ing member firms. 

About 1,000 members are 
expected to Join. Some 400 of 
these will be existing Stock 
Exchange member firms, and 
several hundred more will be 
International banks and brokers 
which trade In securities in Lon- 
don but have not found Stock 
Exchange membership relevant 

Certain other groups will also 
need to Join In order to obtain 
the necessary regulatory cover. 
After next April It will become 
illegal to conduct Investment 
business in the UK without 
membership of a suitable SRO. 

Those other groups will 
include corporate finance or ven- 
ture capital companies, some 
firms in the financial futures 
market Liffe and a few 
operations in the so-called 
over-the-counter market In 
thud-line equities. 

A final important group of 
about 100 potential members 
will consist of banks that do not 
qualify for the Bank of 
England's wholesale market list 


applied to corporate finance, 
have yet to be finalised pending 
farther discussions with SIB. 

The financial regulations relat- 
ing to capital adequacy are 
believed to have survived more- 
or-less intact from those 
included in earlier drafts, despite 
the severity of October's equity 
market crash which cast into 


doubt the volatility assumptions 
on which the capital ratios had 
been based. 

The enormous daily move- 
menu seen in recent weeks have 
led to arguments that more capi- 
tal should be employed by firms 
to back their market positions. 
However, no London firms failed 
in the recent crash, and TSA is 
not proposing any strengthening. 
. As well as delivering the rules 
to SIB, TSA will be sending 


Cj* B. Cj European 
Capital Ltd Assetslrust 


The net asset value 
at 30th October, 1987 

was 

C$2.72 

The net asset value 
after contingent 
Capital Gains Tax 
was 
C$2.55 


Hie net asset value at 
30th October 1987 
DR 6.42 


SPONSORED SECURITIES 


HI* Ura 

206 133 

207 145 

41 32 

142 60 
188 108 
186 95 
281 130 
X47 99 
171 136 
104 n 
180 87 

143 B1 
102 » 
780 320 

88 35 
US 83 
91 58 
124 42 
224 141 
71 32 
131 50 
264 115 
202 190 
175 96 


te. Brit. hd. Ordinary 

An.BriOad.CULS 

Armtage and Moth* — 
BBS Dam frtMp (IISM) . 


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CCt- Croon Onfcwy 

CCL Grate U% Com-Pitf 

CBterMdum Oratory 

MMtn 7 5% Ittl 
SraratM* .... iiM.i.i— . — 

UttCranp 

■Ivdcaa GnMp 

IlnMfaMSt UV (AratSD 

ftraonf Hnldtooi (SO 

Heard HMgi U% MOE). 
Robert Jenfcba.. ■■ 

Sonnora 

Tarde&Carifcte 

TrrriM Hafaflngi (USM) 

IMtacfc Haidaga (SE) 

Wafetr Mtnndcr ISO — 

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Cm 

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(tv (pi 

% 

WE 

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5ecoritln deti**ted (SO Md (USM) mt doll In atyact to tte arts aad ragmtiom rt Tht 
Suck ExdiMge. Oder xoiritin HsUd rtow 4rt Stitt la to 0* * FIMSM 


GrmviDe Davies Odemsa Limited 
8 Lawn Lane. Loudon EC3R 8BP 
Telephone 01-621 f212 
Member of the Stock Etchants 


The CEGB, while claiming it 
did not seek a confrontation 
with British Coal, last night 
stood by its &750m figure. "If we 
could start again and nave a new 
agreement with the coal industry 
we would look for savings of 
that order.” 


It was referring to the Joint 
understanding under which it 
pledges to purchase 96 per cent 
of its coal from British Coal, as 
long as prices do not rise faster 
than inflation and an increasing 
proportion is aligned to world 
prices. 

However, the CEGB acknowl- 
edged that the 5750m compari- 
son is weakened by the lack of 
British deep peats for switching 
mainly to Imports. 'At the end <u 
the day we prefer to buy British 
coal,” the CEGB said. 


This week Nationwide Anglia, 
Britain’s third lamest building 
society, announced it was plan- 
ning to lend up to 5600m to a. 
joint venture company it is 
establishing to Invest in private 
rented housing, The money is to 
bespent over five yean. 

. The Housing. Finance Corpora- 
tion was launched this month by 
James Capel, the stockbroker, 
and by Cipfa Services, the com- 
mercial arm of the Chartered 
Institute of Public Finance and 
Accountancy. It is sponsored by 
the Housing Corporation which 
administers grants to more than 
2,500 housing associations and 
by the National Federation of 
Housing Associations. 

The scheme, which the Gov- 
ernment hopes wQl play a lead- 
ing part in its {dans to attract 
greater private investment in 
rented housing, may be particu- 
larly suited to smaller associa- 
tions which lack the expertise 
and da not have the track record 
to raise private funds in their 
own right. 


copies to Sir Gordon Borne, ! 
director general of the Office of' 
Fair Trading, who will be check- : 


Fair Trading, who will be check- 
ing changes from earlier drafts 
for their effects on competition, j 
It is hoped that Lora Young, 
Trade Secretary, will be in a 
position to recognise TSA as ai 
seif-regulatory organisation | 
under the Financial Services Act 
by the end of January, when ft 1 
will be aide to commence eruroll- 


The first issue of stocks ter the 
investment body, which is 
headed by Mr David Hopkinson, 
retired chief executive of M & G, 
the unit trust group. Is expected 
to be for a package of up to- 
seven or eight separate housing 
association schemes, ranging in 
size from £860,000 to SlOo. 

Mr Graham Axford, James 
Capel's corporate finance direc- 
tor, who Is advising the corpo ra - 
don, said several large assoda- 
ttana were sepa r a t ely considering 
issuing bonds in their own name. 


London Life to 
explain cut in 
terminal bonus 


By Erie Short 

LONDON LIFE Association, the 
second oldest mutual life com- 
pany in the world, is contacting 
all policyholders to explain its 
recent decision to cut terminal 
bonus rates, staffing levels and 
new business growth. 

In a letter sent yesterday from 
Mr Oliver Dawson, the chairman, 
and Dr John Evans, managing 
director, policyholders are told 
some of the reports on the com- 


pany's position were ambiguous. 
The letter gives the reasons for 


The letter gives the reasons for 
the proposed cut in terminal 
bonuses which comes into effect 
next week. London Life 
increased the bonuses in June to 
reflect the benefit of the pro- 
longed rise in equity markets. 

The proposed cut reflects the 
October fall, the net effect being 
to reduce payouts by about 10 
percent. 

The letter emphasises that all 
guaranteed benefits and rever- 
sionary bonuses declared in the 
past are unaffected and that the 
current reversionary bonus rate 
is unchanged. The reversionary 
bonus rate will be reviewed In 
March to April in the usual man- 
ner. 

A warning is given that, 
although It Is too early to predict 
the outcome of the review, a 
continuing fall in long-term 
interest rates would Inevitably 
lead to a fall in reversionary 


bonus rates, not only for London 
Life but for many other life com- 
panies. 

London Life, the letter 
explains, has a conventional dis- 
tribution of assets for Its Ufe 
funds. Nevertheless, the com- 
pany’s capital base was reduced 
and it was felt prudent to plan 
for a Iowa- level of new business. 


UK NEWS 

PMttp Co gg an analyses Robert Maxwell’s links with Elton John’s Wai’oru 

Football League re-examines its defences 


BRYAN ROBSON bootb majesti- 


cally to meet the wi 
and heads it accurst 
goal It is caught na 
the keeps: but by a 


nujeati- On Thursday, the Football 
r*s cross League management committee 
towards said that it did not think it 
, not by 'desirable for any individual or 


THE HOUSING Finance Corpora- 
tion, an Independent investment 
body established to raise private 
finance for voluntary housing 
associations, is expected to make 
I its first issue next week. The cor- 
poration plans to raise up to 
S2bn over the next three years. 

The first issue, a package of 
stocks which could include a 
zero coupon bond, is likely to be 
modest, S25m to 550m. A larger 
issue, of about 41,00m, is expec- 
ted early next year. 

Housing associations, under 
proposals in the Housing Bill 
published this month, wui be 
required to raise an increasing 
proportion of their funds from 
theprivate sector. 

The associations provide subsi- 
dised rented housing for a wide 
range of disadvantaged people, 
including those who cannot 
afford to buy their own homes, 
the elderly and disabled. Previ- 
ously they have been almost 
totally dependent on govern- 
ment grants for funds. 

The mU proposes to encourage 
greater private Investment ui 
housing by removing letting 
restrictions and permitting rents 
to rise, allowing investors to get 
a satisfactory return on their 
money. 


the keeps: but by a bailiff, who organisation, 
confiscates it and marches through nomJ 
swiftly off the pitch, shouting: position or a; 
‘Sorry lads, but the High Court position to in 
decided against you 


‘desirable tor any individual or 
organisation, either directly or 
through nominees, to be in a 


decided against you this morn- 
ini* 

The scene may be every foot- 
ball dub director's nightmare, 
but not necessarily as far-fetched 


netting! position or appear to be in a 
Court position to Influence the man- 
room- agement or administration of 
mare than one club.' 
r foot- Mr Maxwell and BPCC are 
mare, pressing ahead regardless, and 
itched the league looks likely to call all 


as it sounds. After all, earlier this the dub chairmen together to 
year, a report produced by Jar- examine the regulations again, 
dans, a research company, found But soccer cannot afford to drive 


that 80 out of 92 football dubs too many investors away. 


were technically Insolvent. 


Mr Jimmy Hill, the television 


Last week’s sale of Watford by commentator who stepped in to 


pop singer Elton John to pub- 
lisher Mr Robert Maxwell’s BPCC 
threw the problem Into sharp 
relief. It left Ur Maxwell with 


save his old dub Folium earlier 
this year, says: “Someone has to 
put resources in to keep the 
dubs alive, and then's a limited 


needs as broad ft spread of inter- 
ested businessmen as possible if 
it is to survive in its present 

f °One way forward, bdfovw Mr 
Paul White of Hanover Druce, 
the consultancy firm which 
brought Elton John and Mr Max- 
well together, Is for large corpo- 
rations with strong local WWW- 
tions to put money Into dubs. 
The obvious foreign example is 
Flat's ownership of the Italian 
side Juventus - and BPCC is one 
of the largest employer* in Wat- 
ford. 

But perhaps investing In foot' 

FootbmU league rule* come between selter and buyer • ^^“roi55b2SS^?Jhe 

crowds return. Although atten- 

for creating part of nessmen face overwhelming dances are 25 per .SfP*, 




rather more associations with number of businessman who are maximum 


today's problems by successfully temptations to 
negotiating the abolition of the when they take 


spend money this year, they are still below the 
charge of foot breakeven level for many dubs. 
Tin um- -Th« Improvements are needed on the 


association football than the — - — — — - — * — — — . - ^ ■■■■ ... .p, ... .. m- uv„u a w* w. . m . ■ ■ ■ v .... . — -- — — — _ 

game's establishment was willing Mr Hlfl has already found that evison revenues have increased the players, managers and diree- Mr full suggests: Tne answer 
to tolerate. those businessmen who do since then, rival leisure attrac- tors, and that makes the dlrec- is in the pattern or the game. 

Officially, Mr Maxwell’s only become Involved do not always tions and growing hooliganism ton ambitious to succeed. Ambi- People used to come arm enjoy 

position in football management have purely footballing, interests have caused soccer crowds to tion means expensive transfer the game Itself - now the pres- 

is as chairman of Derby County, in mind. He came to Fulham to drift away. fees and high wages for the best sure for success often means 

But Mr John Holloran, chief rescue the dub from Marler The last few- years have seen a players.” the only thing they can enjoy » 


to do so." 


Although ball dubs. Mr Hill says: "The Improvements 


adver ti s i ng sponsorship and tel- crowd puts a Jot of pressure on pitch oweB as off it 


the diree- is in the pattern of the game. 


But Mr John Holloran, chief rescue the dub from Marler 
executive of BPCC, the printing Estates' plan to develop the Cra 


subsl diary of Ma: 
cation Corpora*! 
chairman of W 


of Maxwell Comm! 


fees and high wages for the best sure 
players.’ the < 

Although Mr Maxwell is not tnei 


success often means that 


the only thing they can enjoy is 
the result. If there could be more 


Maxwell’s son Kevin is chairman 
of Oxford United. 


ord, and Mr neighbour Queens Park Rangers. Bradford fire tragedy proving an the Littiewoods founder, and his crowds would return. 


Ironically, in his earlier days additional burden. 


family have Interests in both- A few fans on the terraces 


as a player, Jimmy Hill was Even normally cautious busi- Liverpool and Everton - football might say Amen to that. 


Finn stand urged on Murdoch and FT 


BY TQM LYNCH 

A SENIOR Tory backbencher 


state explicitly that it would 
oppose any bid by Mr Rupert 


oppose any bid by Mr Rupert 
Murdoch's News Corporation for 
the Financial Times. 

Mr Jonathan Aitken (Thanet 
East), a former Fleet Street jour- 
nalist, referred during a debate 
on press freedom to speculation 
that Mr Murdoch had increased 
his 14.7 per cent stake in Pear- 
son, the FT*s owner, in the last 
few days. 

If Mr Murdoch bought the FT 
it would represent 'an unaccept- 
able concentration of economic 
and editorial power. I do hope 
the Government shares this view 
- it has been pretty mealy- 


mouthed in the past,* lie said. 

He dismissed as "an ambiguous 
piece of waffle* an assurance to 
-the Commons by Mr Kenneth - 
Clarke, Chancellor of the Duchy 
of Lancaster, on Wednesday that 
the Fair Trading Act would 
apply "as it was intended to be 
applied" in the event of any bid. 

When Mr Tim Renton, Home 
Office Minister of State, 
reminded him that Mr Clarke 
had also said he would "have a 
duty to address the act’ If there 
was an attempt by any propri- 
etor to acquire a controlling 
interest, Mr Aitken said: "That is 
not quite crystal dear, but I wel- 
come the note of hope you have 
introduced into the debate.” 

Later, Mr Son Leighton. (Lab. 
Newham North East), who is 


sponsored by the general print 
union Sogat, urged the Govern- 
ment to ‘get away from these 
nuances,” and Mr Malcolm 
Bn me^l^ ^ ^ttade and Industry 

the Gov- 
ernment's assertion that any 
takeover of the FT must, by law, 
be referred to the Monopolies 
Commission while the paper con- 
tinued to be profitable 

Mr Bruce said Lord Young, 
Trade and Industry Secretary, 
would still have the final say 
and demanded a Government 
statement that such a takeover 
would be unacceptable. 

Mr Renton said It was not pos- 
sible far Lord Young to state Ids 
position in any hypothetical 
case. He assured MPS that Mr 


Clarke's statement "was very 
carefully considered 
Some Tory backbenchers 
denied that monopoly power was 
a problem in the industry and 


[Government 
accused 
over Zircon 


Mr David Shaw (Dover) said suc- 
cessful proprietors such as News 
International had captured the 
mood of the British people, who 
wanted to get away from stories 


By Ton Lynch 


knocking Britain. 

Mr Aitken wasamong several 
Tory MPs who voiced concern 


warned the tabloid newspapers 
that they would have to improve 
their standards If they were to 
head off pressure for Govern- 
ment Intervention in the form of 
a statutory right of reply to false 

■nil ria m aging da>gm«nt« 


Editor calls Spycatcher ban ‘intolerable’ 


FINANCIAL TMES REPORTER 

THE COURT BAN on press 


reporting of Spycatcher, the 
memoirs of Mr Peter Wright, the 
former M15 officer, was an intol- 


erable restraint an the public’s 
right to know, Mr Donald 1M- 


right to know, Mr Donald Trd- 
ford, editor of The Observer , told 
the High Court yesterday. 

"It cannot be that reporting on 
Spycatcher in The Observer 
could cause any further da ma ge: 
the cat is well and truly out of 
the bag," he said. 


Mr Trelford was giving evi- 
snee before Mr Justice Scott in 


the case following publication of 
Mr Wright’s allegations, espe- 
cially - where (as in this case) the 
suspicion must arise that action 
is being taken against the press 
to hush the matter up and save 
the Government embarrass- 
ment," 

Mr Trelford said that any dam- 
age to national security which 
Sir Robert Ar m st r ong, uie Cate- 
net Secretary, had feared before 
publica t ion of Spycatcher must 
now have occurredi 


Cross-examined by Mr Robert 
Alexander QC, for the Attorney 
General, Mr Treffbrd said he was 
extremely concerned about the 
use of "prior restraint" on news- 
paper. publication and the 
increasing practice of the Trea- 
sury Sahel tor -in writing to -edt- 


ANGRY OPPOSITION MPs yes- 
terday accused the Government 
of "sneaky and disreputable" tac- 
tics for announcing that no-one 
was to be prosecuted over the 
Zircon spy satellite affair In the 
form of a written reply on a Fri- 
day afternoon, when few MPa 
are at Westminster. 

Sir Patrick Mayhew, the Attor- 
ney -General, Bala in the written 
reply: ‘Having considered with 
the Director of Public Prosecu- 
tions all the relevant factors, 
including in particular the public 
interest, I have decided not to 
institute criminal proceedings in 
respect of any disclosure that 
has been reported to him of 
information in relation to Project 
Zircon." 

The existence of the Zircon 
project - which was abandoned 
by the Goverment in August - 


tors seeking undertakings about 
what their papers would print. 


deuce before Mr Justice Scott in 
reply to the Government's action 
for a permanent ban on report- 
ing of material from the book, 
which has already sold one mil- 
lion copies worldwide 

The editor accused the Govern- 
ment of trying to bully newspa- 
pers. "It is an Important part of 
the function of the press In a 
free society to check on abuses 
of power." ne said. 

T would not exdude the secu- 
rity services from such debate 
and scrutiny if sufficiently seri- 
ous abuses came to light, as is 


The Observer, he said, had 
ways tried to gather ana pub- 


alwsys tried to gather and pub- 
lish information on Important 
topics of public interest It had 
been an article in The Observer 
which alerted the Government to 
the fact that Mr Wright was 
planning publication of his mem- 
oirs in Australia. 

Mr Wright had made out a 
"sufficient case” to merit further 
public scrutiny of important 
matters. It was worrying in itself 
that a man so unstated to secu- 
rity work should have reached 
high office in MIS. 


wttat tneir papers would print. 
This, he felt, was aBen to the 
British system. 

The Government was quite 
right to try to keep Its secrets 
secret and to resort to the law if 
necessary in the last resort, Mr 
Trelford said. However, what the 
Government was now trying to, 
do now "defies all logic". 

Mr Peter Preston, editor of the 
Guardian newspaper, told the 
court that the Government had 
used the court ban to prevent 
publication of, or inquiry into, 
“very important allegations." 

Even oefore Spycatcher had 
became available worldwide, the' 
Government’s claim for a publi- 
cation ban had not been con- 
vincing, Mr Preston said. 



* ' .: . i rtf* 


tty the Goverment in August - 
'was disclosed last January by Mr 
Duncan Campbell in a New 




Peter Wrights author of tbe-j 
banned book. 


The hearing will resume on 
Monday. 


Duncan Campbell in a New 
Statesman article and the BBC 
dropped a programme about the 
project. 

The Glasgow headquarters of 
the - BBC, the New Statesman 
offices arid Mr Campbell's home 
were all -raided by the Special 
j Branch. All- bat one of the docu- 
ment* removed during those 
raids have now been returned. 

In a series of points of order at 
the end of yesterday's Commons 
business, labour and nationalist 
MPs protested that Sir Patrick 
ought to have announced his 
decision in a statement to the 
Commons, enabling MPs to ques- 
tion him on the issue. 

Mr Roy Hattersley, shadow 
Home Secretary, said in a state- 
menu “The way the Government 
has made this significant 
announcement has only added to 
the mystery of the case." He also 
accused the Government of "bul- 
lying” people it could not sue 


Babcock boiler-making 
arm attracts interest 


BY NICK GARNETT 

A NUMBER of companies have 


Staff cots as 
Acorn drops 
custom market 


Development agency to 
set up regional offices 


shown an interest in purchasing 
the Babcock power station baft 


the Babcock power station boil- 
er-making business from FKI 
Babcock. 

Mr To ny G artland. chief execu- 
tive of FK2 Babcock, the group 
formed out of the re cent pur- 
chase of Babcock by FKL said 
this week that the Babcock 
power generation business would 
be sold if a good offer was made 
for it. 

Northern Engineering Indus- 
tries, the only other UK manu- 
facturer of boilers for power star 
tions, said yesterday that it had 
been In discussions with FKI 
Babcock about the purchase of 


the power generation business. It : 
is thought that those talks are 

continuing. 

However, FKI management 
has indicated that a gulf exists 
between what prospective pur- 
chaser are prepared to offer and 
what FKI believes the business is 
worth. 

GEC, which manufactures tur- 
bines for power stations but has 
no boiler-malting arm, tried to 
purchase Babcock’s bouer activi- 
ties shortly before the FKI take- 
over. 

The stumblingUock was price. 
Babcock was believed to want 
about S9 Qm bat GEC was pre- 
pared to offer only &40m-SSOm. 


'• By David Thomas 

ACORN COMPUTERS, the Cam- 
bridge computer company, is 
shedding a sixth of its waricfarce 
and pulling out of the custom- 
ised market where it had been 
trying to expand during the past 
year. 

Acorn has decided to abandon 
its attempt to sell mare of its 


BY JAMES BUXTON, SCOTTISH CORRESPONDENT 


THE SCOTTISH Development 
'Agency is to establish regional 
offices in the main Scottish 


towns as part of a reorganisation 
to make die agency more respan- 


short of expectations. 


However, the company will 
ontinoe its contract with Ren- 


Order for Aberdeen yard 


BY KEVM BROWN 

HALL RUSSELL, the privatised 
Aberdeen shipyard, has won a 
SI 9m order to build a supply 
ship for the South Atlantic 
island of St Helena, the Govern- 
ment said last night. 

The ship will carry 125 passen- 
gers and up to 1,500 tonnes of 


cargo, including diesel fuel for 
the island. It will replace the 
existing 24-year-old ship in 1990. 

The Overseas Development 
Administration said the ship 
would Hnk St Helena, the UK. 
Tenerife, Ascension Island, and 
Cape Town, 


continue its contract with Ren- 
ters, the International news 
agency, the only such deal it has 
in that area. 

The decision to leave the cus- 
tomised market, which will 
mean a loss of 50 of its 800- 
strong workforce, has been taken 
after a review of Acorn's activi- 
ties following the unexpected 
departure of fir Brian Long, the 
company's managing director, a 
month ago. 

Mr Long had been particularly 
identified with Acorn s push into 
the customised market, but the 
company has refused to com- 
ment on his reasons for leaving. 


to make the agency more respon- 
sive to local demand. 

The agency works for the 
regeneration of the Scottish, 
•economy, and the reorganisation 
Is being carried out by Mr Iain 
Robertson, who became chief 
executive in September. 

The SDA has also adopted a 
new corporate strategy. 
Alt ho ugh it wiR continue to pro- 
vide Its present range of services, 
from the reclamation of derelict 
land to venture capital Invest- 
ments, it will concentrate on 
four main policies. 

They are: ensuring that Scot- 
tish companies keep up to date 
with new technology; fostering 
• Scottish enterprise by assisting 
business start-ups and expan- 
sion; encouraging companies to 
compete in international mar- 
kets and urban renewaL 

The agency has offices 
throughout the southern half of 
Scotland, but only the Aberdeen 
office la a fully-fledged regional 
office, for norm-east Scotland. 


Sir Robin Duthie, agency 
chairman, said yesterday that 
people often thought that SDA 
stood far Strathclyde Develop- 
ment Agency, since so many of 
its activities appeared to be con- 
centrated in Strathclyde region, 
the area around Glasgow where 
about half the Scottish popula- 
tion lives. 


The agency is to establish two 
directors, one for western Scot- 
land and one for the east. The 
west of Scotland director will 
have three regional directorates 
under him for different areas of 
Strathclyde. His eastern counter- 
part will have four regional 
directorates, responsible for 
north-east Scotland; Tayside and 
Fife; Edinburgh and Lothians: 
and the Borders, Dumfries and 
Galloway. . 

Two directorates with specd- 
absed or strategic functions will 
remain at the SDA’s head office 
in Glasgow to deal with Industry 
and enterprise development, and 
with property services and urban 
renewaL Finance and other ser- 
vices will continue to be at head 
office. 


Harland and Wolff losses to double 


BY KEVIN BROWN 


HARLAND AND WOLFF, the 
state-owned Belfast shipbuilder,, 
is ejected to announce operat- 
ing losses of just under ££8m 
next week, compared with 
£2&8m last year. 

The loss is believed to Include 
more than £26m to cover the 
cost of 1,300 redundancies' 
between January and September, 
which reduced the yard's work- 
force to 4,000, compared with 
6,600 in 1983. 

In addition, Harland has faced 
unexpected losses on the conver- 
sion of a commercial container 


British Petrokmn- 
The company is believed to be 


claiming more than SlOra from 
the Defence Ministry to cover 
extra costs on the aviation train- 
ing ship, some of which are said 
to result from design changes 
insisted on by the Navy. 


ship for an aviation training role 
with the Royal Navy, and on a 
sophisticated drilling ship for 


The BP ship is understood to 
have been delayed by late deliv- 
ery of an essential main switch- 
beard by a sub-contractor, lead- 
ing to a change in the 
construction schedule. 

In common with other Euro- 
pean shipyards, Harland has 
switched Its marketing efforts 


direct compe ti tion with low-cost 
yards in the Far East 

The company has Invested 
heavily in computer-based 
design and planning systems, 
high-technology construction 
equipment, ana trained staff, but 
has been unable to win any new 
orders. 

Harland Is believed to be dis- 
cussing an order for a large 


cruise ship, and Is pursuing fur- 
ther MoD contracts, Including 
steelwork in connection with the 
modernisation of the Royal 
Naval Armaments Depot at Coid- 
port, in Scotland. 

At least one major order will 
be required in the coining year if 
the yard is to avoid further 


towards more sophisticated ships 
over the last three years to avoid 


drilling ship for over the last three years 


redundancies, which could 
reduce the workforce to around 
2 ^ 00 . 

Meanwhile, Harland Is expec- 
ted to point to Its Improving 
record In relation to British Ship- 
builders, the other major nation- 
alised shipbuilder, as a Justifica- 
tion for continued government 
support BS lost &148m at the 
trading level last year. 

Like other shipbuilders, Har- 
land hopes far a big increase in 
demand from 1990 onwards, • 
when a large part of the world 
fleet will need to be replaced. 

If the forecast boom happens, 
capacity cuts in Europe and 
Japan should help to raise prices 
to profitable levels. 


Rescue package ready 
for microchip company 


BY JAMES BUXTON, SCOTTISH CORRESPONDENT 

A S7fira RESCUE package was Bank of Scotia 
last night completed for Inte- also provide add 
grated Power Semiconductors, a anting, and a ms 
Scottish-based microchip com- from the corai 
pany, which went into receiver- means that aboi 
ship two and a half weeks ago. been saved et Li 
Seagate Technology, a Califor* Lothian, 
nia-based company, which Is a 
mnjor supplier of dlsk drives for IPS, which was run bv a team 
anaR romratera, is taking a con- of US executives, but financed 
trtihng stake m a new company by British venture capital, went 
wh«a» Is birring the assets and into receivership after the oriel-' 
business of IPS from the recehr- nal lnvestorsTied by Investin' 
ere. Indusm? rof ' - 


Bank of Scotland, which will 
also provide additional debt fin- 
ancing, and a m anag e ment group 
from the company. The deal 
means that about 160 jobs have 
been saved at Livingston In West 
Lothian. 


The other new Investors are 
the Scottish Development 
Agency, which lost S2m when 
Ire went into rece i v e rship, the 


T*uh xrri'.Tr-TPi - f UlveSSC Ul 

industry (3i), refused to advance' 
more funds. It has absorbed' 
about £20 m since it was 
launched In 1984, of which about 
a*.75m came from 31 '••• 


<4 . .. 




cord 


• r \t 

“ 1 W 




I 


Fin a n ci a l Times Saturday November 28 1987 

UK NEWS - LABOUR 


APPOINTMENTS 


Big majority for merger likely 


BY PMUP BASSETT, LABOUR EDITOR 


EARLY SOUNDINGS among 
union members voting on tine 
merger of the white-collar Tass 
'and ASTMS unions are showing 
a large majority in favour of the 
move. 

initial voting returns from the 
ballot of the two unions' com- 
bined membership of 630,000 are 
said to be running at about five 
to one in favour of the proposal 
Such a result, if confirmed, 
would secure the future of the 
merged union, called Manufac- 
turing, Science and Finance. 

Voting in the two unions 


closes next week and the result 
is due to be declared on Decem- 
ber?. 

A substantial vote in favour of 
the amalgamation by such a 
large margin would be welcomed 
by the leaderships of-the two 
unions, which have campaigned 
heavily in favour of the merger. 
It would create one of Europe's 
i Mr Ken 


_ and both 

Gill and Mr dllve Jenkins, gen- 
eral secretaries of Tass and 
ASTMS respectively, believe- it 
would draw in other unions for 
further mergers. 


. The two unions have been 
making a joint approach to a 
large number of other unions, 
offering talks on future working 
relationships,- and promoting 
hard the advantages of the econ- 
omies of scale offered by -the 
new, merged union. 

Because of what they see as 
political, differences between the 
memberships and leaderships of 
Tass and ASTMS, right-led trade 
unions have been strongly 
opposed to the merger. 

However, even union leaden 
on the right now acknowledge 


that the merger will go ahead, 
and are likely to start to concen- 
trate their efforts in trying to 
prevent any further unions join- 
ing the venture. 

MSF will offer a considerable 
industrial logic and coherence, 
since many , members of its two 
constituent unions work In over- 
lapping areas and occupations. 

The formation of the merged 
union may also affect company 
bargaining structures, with the 
prospect for employers of much 
more simplified bargaining, 
based on the single MSF union. 


John Gapper reports on the implications of the TV-am dispute 

Union case slips down the ratings 


" RATS' declares the tabloid 
newspaper headline pinned to a 
board outside TV-ams headquar- 
ters in Camden, North London. 
In a motor caravan parked near 
by, Mr Tim Wight is resigned to 
having an image problem. 

“The public relations battle is a 
no- ho per for. us. We might as 
well forget it,' he refl ects gloom- 
ily. Mr wight, ACTT technicians' 
union shop steward at TV-am, is 
becoming used to criticism of his 
229 members from various quar- 
ters. 

Wherever they look, television 
staff are in trouble. For some 
newspapers, it is enough that the 
locked -out TV-am technicians 
have well-paid jobs, have dis- 
rupted a Caring Christinas cam- 
paign and have removed Anne 
Diamond from the airwaves. 

But disapproval extends 
beyond the media. The Prime 
Minister has called television the 
last bastion of restrictive work- 
ing practices, and the Home 
Office is trying to force ITV com- 
panies to change the ways of 
their workers. 

The political pressure is hav- 
ing its effect, according to Mr 
Wight. He says: ‘Bruce Gyngell 
(Tv-ara's managing director) is 
obsessed with the franchise. He 
talks about it all the time, and he 
seems to think he has to kick us 
in the teeth to keep it.” 

Harsh words are not the only 
outlet for the Government’s frus- 
trations. It intends to shake up 
the industry by increasing com- 
petition - offering 25 per cent 
a cc ess to the network for inde- 
pendent producers, and opening 
the way for satellite ana cable 


INDUSTRIAL conflict at 
two Independent Television 
companies continued yes- 
terday with no sign of a 
solution to die separate dis- 
pates over working prac- 
tices. 

TV-am, ITV* breakfast 
television company, said 
that it had no idea to take 
back 229 technicians whom 
it locked oat on Tuesday 
morning for taMng indus- 
trial action in protest at 
manning levels for a Christ- 
mas « m pi<g i«- 
Members of the Beta cleri- 
cal and stadio staff anion 


met at Tyne Tees where 84 
electricians have been die- 
missed by the company for 
going on strike in protest at 
the sacking of three eol- 
i for not w o r k i n g nor- 


five" - 
York- 


Members of the ACTT 
technicians onion are bal- 
loting on whether to work 
normally if managers oper- 
ate lights In a studio In 
place of electrlaas firom 
Monday. The company has 
said it will regard a reflasal 
to work normally as Indus- 

f rill i rt l m i. 


television. 

The dismissal of 34 striking 
electricians at Tyne Tees and the 
lock-out by TV-am of 229 techni- 
cians indicates a new willingness 
by ITV companies to plump for 
the devil of industrial confronta- 
tion rather than sticking with 
the deep blue sea of compla- 
cence. 

At the heart of Independent 
Television working practices is 
the ITV companies' national 
agreeme nt w ith four staff unions 
- the ACTT, Be ta (cle rical and 
studio staff), the EETPU (electri- 
cians) and the NUJ (journalists). 

This was first negotiated in 
1958, when most programmes 
were made In multi-camera stu- 
dios according to strict timeta- 
bles. To gain the freedom to ros- 
ter staff up to 14 hours a day, 
seven days a week, the ITV com- 
panies made some unusual con- 


cessions. 


not observed, and ‘golden hours” 
.clauses, under which night-time 
work attracted payments of up 
to five times the basic rate. 

Thirty years later, some ITV 
companies argue that production 
requirements have changed so 
much that the agreement is 
badly out-of-date. Tyne Tees and 
London Weekend Television 
have signalled that they would 
like to pull out. 

But others say that the blame 
for excessive staffing costs lies 
more with the local deals which 
have been built on top of the 
national agreement. These deals 
- described by one senior execu- 
tive as “embroidery" - fix crew- 
ing levels. 

The irony is that neither Tyne 
Tees nor TV-am Is the most obvi- 


ous company for a show-down 
with unions on working prac- 
tices. The ones seen as suffering 
most from the proliferation or 
local deals are the "big f 
Thames. LWT, Central, 
shire and Granada. 

That may not matter any more 
as the twin disputes enter their 
second week and take on an 
Increasing symbolic significance. 
Mr David Davidovitz, director of 
operations at TV-am, says: *lt 
may well be that other people 
will look at us and say: They are 
taking it on the chin, why don't 
we?" 

Tyne Tees is also conscious of 
the wider implications of its dis- 
pute. The company presented a 
paper to staff unions earlier this 
year which argued that ‘our 
staff costs are too high - despite 
being amongst the lowest in 

rrv. p 

It concluded that there were 
i”stark choices ahead.” One of the 
s tarke st will come on Monday if 
ACTT technicians and Beta staff 
decide not to work with mangers 
who turn on studio lights in 
place of the dismissed electri- 
cians. 

Tyne Tees has said it will con- 
sider sacking them in turn, leav- 
ing only its journalists still at 
work. 1116 company has 
told the electricians that it 
only take them back if they 
agree to broad changes in work- 
ices. 

the TV-am picket line, the 
technicians fear too that they are 
getting caught up in a larger 
struggle. Mr Wight views the 
inspect disconsolately: ‘God, I 
not,* he says. 


Record overtime leads 
to 8% earnings rise 


THE underlying rise in the level 
of eaxningeto December is Likely - 
to be 8 per . cent, reflecting ‘a 
record level of -overtime, accord- - 
ing to a background report by 
Greenwell Montagu Research. 

The report suggests that there 
could be further rises in the 
underlying level of earnings 
growth in subsequent months 
it points out that, in the six 


months ending September 1987, 
an average of 12.6 hours per 
week overtime were worked 
compared to a figure of 11.9 for 
the previous six months. 

It says that the stock market 
crash & unlikely to depress pay 
increases, taking into account 
the background of the continued 
buoyancy of British industry evi- 
dent from recent CBI surveys. 


Scottish teachers vote 
for political fund 


JARDINE MATHESON HOLDINGS LIMITED 


1987 Interim Scrip Dividend 

For the purposes of the 1 987 interim dividend of 
Jardine Matheson Holdings Limited the average 
last dealt price of the Company's Ordinary Shares 
on The Stock Exchange of Hong Kong Limited for 
the five trading days up to and including 27th 
November, 1987 was HKS1CL16 The number of new 
Ordinary Shares which Shareholders will receive 
will be calculated by multiplying the number of 
Ordinary Shares, in respect of which they have not 
elected to receive cash of HK1 2.5 cents per 
Ordinary Share, by the following fraction:- 

0.125 


10.16 


Fractions of new Ordinary Shares will be 
aggregated and sold for the benefit of the 
Company. 

Thus a holder of 2,000 Ordinary Shares In respect of 
which he had not elected to receive cash will receive 
24 new Ordinary Shares. 

By Order of the Board 
R.C. Kwok 
Company Secretary 

Hong Kong, 27th November, 1 987 


wm 


Jardine Matheson Holdings Limited 

(incorporated m Bermuda with limited liability) 


CHARTERHOUSE BANK LIMITED 
MORTGAGE RATE 

Charterhouse Bank Limited announces 
that with effect from 1st December 1967 the 
Charterhouse Bank Limited Mortgage -Rate will 
be reduced to 10.25% per annum. 



charterhouse 

•‘ai^BOfWHDtfcBAWOfSmilANDGflOlP * 


BY JIMMY BURNS . ... 

THE Educational - Institute- of 
Scotland, the union re presenting 
the majority of Scottish teachers 
outside universities, yesterday 
became the first teachers' union 
in the UK to vote in support of 
setting up a political fund. 

Mr John Pollock, the EIS's gen- 
eral secretary, said the initiative 
was of ‘enormous significance* 
to teachers throughout the UK 
and would encourage other 
white-collar union to do the 
same. 

However, there was no imme- 
diate indication that any of 
Britain's other major teacher 
unions sees , a necessity to adopt 
a similar strategy to press its 
claims against the Government. 

The EIS decision to set up a 
political fund will in practice 
allow it under current legislation 
to finance more directly its cam- 
paigns against the Government's 


policies, particularly, on educa- 
tion. 

Mr Pollock, whose is a member 
of the Labour Party and former 
chairman of the TUC, said his 
union would remain pluralistic 
and denied that the fund would 
take Scottish teachers towards a 
formal alliance with parties 
opposed to the Government. 

However, he accepted that his 
traditionally non-partisan union 
had become "radicalised' during 
a protracted pay dispute lasting 
from 1084 to eany this year. 

The decision to set up a politi- 
cal fund was also taken in an 
effort to avoid future court eases 
being taken against the union by 
individual unions under the 
Trade Union Act; 

This bars any union which 
does not have a political fund 
from financing an election cam- 
paign against a party or candi- 
date an a political issue. 


Only partial backing for 
Job Centres strike 

BYJtMMYBURNB 

A ONE-DAY national protest 
strike against the Government's 
Youth Train ing S cheme by mem- 
bers of the CPSA civil servants’ 
union yesterday closed a major- 
ity of unemployment benefit 
offices and Job Centres in Scot- 
land and north west England but 
had limited repercussions in the 
rest of the UK 

The CPSA publicly described 
the strike as a ^promising start to 
a campaign that is bound to be 
of long duration.” 

Privately however some offi- 
cials of the union said the partial 
support for the strike, and its 
virtual failure in London and the 
south east represented a political 
defeat for the hard-left majority 
on the CPSA executive domi- 
nated by Mr John Macreadie, the 
assistant general secretary. 

Earlier yesterday Mr John 
Ellis, the CPSA’b general secre- 
tary, who is politically opposed 
to Mr Macreadie, urged a mem- 
bership rally in London to opt 


for moderation and not to rule 
out further ne go tiati o ns with the 
government 

He indicated that he did not 
believe the circumstances were 
ripe for uncom prom ising indus- 
trial action. ‘we're not sure 
where to go from here because 
we don't know how many mem- 
bers are prepared to give us sup- 
port. .just to. take industrial 
action will not be successful,* Mr 

Rllfa Baid. 

Mr Norman Fowler, the Secre- 
tary of State for Employment, 
described yesterday’s action aa 
‘totally unacceptable”. He said 
the Government, was committed 
to the major YTS provisions 
nationwide. 

The strike was adhered to by 
just over 8,000 of the CPS As 
30,000 member section within 
the DoE. The strikers claimed 
that YTS was a ‘cheap labour 
scheme* that was being used to 
replace jobs inside the Civil Ser- 
vice. 


Ladbroke ‘rejects ballot’ 


BY OUR LABOUR STAFF 

THE TGWU transport union said 
esterday that Ladbroke Group 
ad declined its challenge to 
allow a staff ballot to determine 
trade union recognition. 

ACTSS, the TGWU's white-col- 
lar section, had offered publicly 
to drop its campaign to organise 
workers in Ladbroke’s betti. 
shops if a ballot showed lack 

support - 


H owe v e r, the union said 

terday that Ladbroke 

responded against the initiative. 
As a result, ACTSS had reiter- 
ated that it had ‘every intention 
of pressing the matter to a final 
conclusion.* 

Mr Brian Coot TGWU liaison 
officer, said Ladbroke staff had 
been enthusiastic about the bal- 
lot idea. 


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FINANCIAL TIMES. U CANNON STREET, LONDON EMP «ST 


Post talks 
may pave 
way to 
settlement 

By Jinny Bumajefaew Waff 

the PROSPECT that Christmas 
mail might be seriously dis- 
rupted by industrial action 
receded yesterday following 
t&lkB between union leaders and 
the Post Office. 

Mr Alan Tuffin, general secre- 
tary of the Union or Communica- 
tion Workers, said after his first 
personal intervention in his 
union’s two weeks of talks with 
the Post Office both sides had 
made concessions. 

Mr Tuffin said he believed yes- 
terday' talks could have paved 
the way for a settlement next 
week. T think an agreement is 
now in front of us,* he added. 

The Post Office said it believed 
there was now a "willingness on 
both sides' to reach an agree- 
ment by Tuesday when the uCW 
is due to decide whether the 
threatened industrial action goes 
ahead. 

Mr Tuffin had earlier issued 
the Post Office with the Tuesday 
deadline, warning that his col- 
leagues were showing increasing 
frustration with the apparent 
lack of any substantial progress. 

The talks, which are expected 
to continue during the weekend, 
are aimed at drawing up a pack- 
age of efficiency improvements 
and measures to improve quality 
of service which could pave the 
way for a cut in the working 
week. 

Mr Tuffin said yesterday that 
the Post Office had indicated for 
the first time that there could be 
circumstances where in principle 
they would be prepared to meet 
the postmen's demands for a 
reduction in their working week. 

In return, Mr Tuffin said that 
he was prepared to consider the 
Post Office s requirements for a 
more performance- related bonus 
scheme. 

TNT staff vote 
to settle 

ABOUT 5,000 drivers em; 
by TNT, the Australian 
transport group, voted y< 
by a 2-1 majority to accept it 
revised pack and conditions 
package 


A.G.Stanley reorganises 


AG. STANLEY has reorganised 
its senior management. Mr 
Soger Re g an , group managing 
director, will head tne products 
division, including Fine Art 
Wallcoverings and Rrpolin Paint; 
.Mr Peter Wood, main board 
director, will be responsible for 
the retail division, covering 
nearly 400 FADS and Decor I 
stores; Ur Don Brown, main 
board director, will direct the 
central services division. Mr 
Peter Kirby has been promoted 
from FADS northern divisional 
director to managing director of 
FADS. Mr Mel Priestly, Decor 8 
northern regional manager, is 
promoted to managing director. 
Mr Pat Harms, director and 
group accountant, becomes 
director and group chief accoun- 
tant, central services. Mr John 
Bernard, FADS southern divi- 
sional director, is appointed 


SRI INTERNATIONAL, formerly 
Stanford Research Institute, has 
appointed Mr Peter Farror as 
director, public relations and 
marketing services at its Euro- 
pean headquarters in Croydon. 
He was client services director 
for Lonsdale Allen, Bath. 

* 

The general manager of LEE 
VALLEY WATER COMPANY, Mr 
James F. McGown, has been 
appointed a director. He became 
general manager and company 
secretary in 1984. 

The council of THE INSTITUTE 
OF CHARTERED ACCOUN- 
TANTS OF SCOTLAND has nom- 


inated Mr JJP^Ian) Percy for 
election as junior vice-president 
to take office on April 8. The 
current junior vice-president, Mr 
Gordon S. Low den, and the 
senior vice-president, Mr Frank 
F. Kidd, will, subject to election, 
become senior vice-president and 

S resident respectively for 1988/ 
?. Mr Percy is London group 
managing partner of Grant 
Thornton. 

* 

Ms Clare Whitley has been 
appointed group treasurer of 
UNIGATE from December 31. 
She was vice-president- finance 
at UnJgate Inc. 


Contracts 


The drivers, all members of 
the TGWU transport union, had 
earlier this month threatened to 
stage a national strike. But union 
leaders said yesterday that the 
company had agreed to substan- 
tially improve holiday entitle- 
ment and other allowances. 


group marketing and buying 
director. Mr John Noble, prop- 
erty manager of Jacoa, becomes 
group property director. Mr 
Harry Adams, formerly buying 
director of FADS, takes a new 
post as director of distribution 
and Ripolin Paints. Mr Harry 
Morgan continues as managing 
director of Fine Art Wallcover- 
ings. 

* 

Mr Colin McKenzie has been 
appointed to the board as group- 
commercial director of MAT- 
THEW CLARK AND SONS 
(HOLDINGS). He will assume 
main board responsibility for I.H. 
Baker Wines and Spirits Pty., 
Matthew Clark's Australian sub- 
sidiary. He remains group distri- 
bution director and a director of 
The Sealark Transport Co. 


Digital dealer system 


The Bank of New Zealand has 
ordered a dealer system for its 
Auckland and Wellington offices 
from BISHOPSGATE INFOR- 
MATION SERVICES. The 
order, worth 51.2m, is for what 
Is believed to be the largest digi- 
tal dealer system yet to be 
Installed in Australia and New 
Zealand. 

The system is to be installed 
and operational in the bank's 
financial markets division by the 
first quarter of next year. The 
majority of positions will be 
installed at its Wellington head- 
quarters with the balance at its 
Auckland office, which deals 
with the domestic money mar- 
ket 

Using Broadcast's broadcast 


technology, data is continually 
distributed throughout the sys- 
tem and can be retrieved in a 
subsecond without any de* 


don in response at times _ — 
demand, with a digital data feed; 
the system makes it easy for 
dealers to configure and refor- 
mat information on screen and 
requires considerably less 
cabling than conventional video 
systems. 

Cabling between the Informa- 
tion services and workstations is 
also reduced to a minimum by 
the use of an Ethernet LAN 
between servers and transmit- 
ters. Bishopsgate’s Broadcast 
interface connects each transmit- 
ter to its group of workstations. 


Mr Alan Thompson, eftier exec- 
utive of MORN1NGTON BUILD- 
ING SOCIETY, has been 
appointed to the board. 

STANDARD CHARTERED has 
appointed Mr R. Altringham as 
general manager with responsi- 
bility for credit control He was 
controller, international banking 
division. 

★ 

Following the merger of Good- 
man Fielder, Australia, and Wat- 
tie Industries, New Zealand, to 
form a new company GOODMAN 
FIELDER WATTIE, former Wat- 
tle chief executive Mr Cliff 
Lyon has been appointed Lon- 
don-based chairman of Goodman 
Fielder Wattle PLC, the UK sub- 
sidiary. Mr Noel Robertson 
becomes Singapore director of 
Goodman Wattle (Asia), and 
joins the main board. Mr Don 
Sodden and Mr John Graham, 
in addition to senior Goodman 
Fielder executive Mr John Ken- 
lzy, also Join the main board. 
From February 1 the company 
will be grouped into tea autono- 
mous business groups. 


chief exec- 



V. A HLBTJXTON has signed an agreement with Marubeni UK 
Development, part of the Japanese Marnben! Corporation, for 
a Joint luxury housing venture at HighgaEA Village, north 
London .The £4m development, to be called Marlborough 
Mews, la aimed at the upper end of the property market, and 
will include a swimming pool, Banna and recreation area. 
Houses will sell for up to £815,000 each and flats fbr up to 
£195,000. Work has started on the site at Stanhope Road. The 
eight fonrXwdroomed houses, and eight two-bedroom flats will 
be of traditional construction. An existing house on the site 
will be converted to two two-bedroomed flats. Properties will 
be available for sale from the spring. The scheme was origi- 
nated by Buxton Homes and will be carried out as a design 
and build contract by Burton Building Contractors. 


Holiday and Travel 



HAVE AN AMERICAN THANKSGIVING 
IN IRELAND'S MOST HISTORIC CASTLE 

Ashford Castlef Dating back to 200 years before the 
discovery of America. Situated on 350 scenic acres. 

Host to princes, presidents and world statesmen. 
Renowned for its cuisine, its luxury accommodations 
and magnificent natural amenities. The perfect 
setting for Thanksgiving Day. 

November 26tb to 29th— two sharing IR£180 each. 
Single IR£284» 

Phone our London Office 0 1-630-9555. 

Or your Travel Agent- 




CARIBBEAN 

CONCORDE 

TO/FROM BARBADOS 
Regular Win her Service 
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Legal Notices 


IN THE HIGH COURT OF JUSTICE 
CHANCERY DIVISION 

N 0X06323 OF 1487 
IN THE HATTER OF LEYLAND IMF LIMITED 
-au- 

iii THE MATTER OF THE COMPANIES ACT 
1985 


BEAT HIGH HOTEL 
RATES. 

Begun or mupk Manhattan apart- 
maiu for corporate or holiday travcL 
Horted/U aborted. Mis. day 2 night*. 
Write Joditii Mot Agency 
J5T W 37lh 'tract • 2A 
New Vat, NY 10018 
CMfe 212X71-9001 


NOTICE IS HEREBY GIVEN that a Petition was 
on til* 3rd Nnvamhar 1487 praumed to Hit M* - 
anyt Hltfi Court ot Justice lor the caoflrnwdoo of 
the reduction ol the Share ophal of tfaa Compm « 
Iron £890,000X00 to £126,477.073 

AND NOTICE IS FURTHER GIVEN that the ink] 
Petition It tflrecttd to be heard before the I 
able Hr Justice Peter Glfaeon at the Royal I 
of Justice. Strandl London WC2A 2LL on I ’ 
the 7th top of Dccenriw 1487 

ANY Creditor or danhsltor of the rU Company 
desHno to oppose the nuking of an Order lor the 
confirmation of (he ruhretion of the capital should 
appear at the time of hearing In penoo or bp 
Co uat H for tfrt putpoia. 

A copy tf the raid Petition will be furnished to aw 
such person requiring the same fay the undemea- 
Uoiwd Solicitors on payment of the regulated 
durge lor the same. 

Drted tide 25th dto of November 1487 

CWMOan, 

BtodUrlara House, 

14 New Bridge Street, 

LONDON EC4V fa BY 

Reft RWC 

SoUctom fbr the Company 

M THE HIGH COURT OF JUSTICE 
CHANCERY DIVISION 
No. 006243 of 1987 

M THE MATTER OF WPP GROUP PLC AND 
W THE MATTER OF 
THE COMPANIES ACT 198$ 


Personal 


“Oh What a Jolly 
Thing to Be 

A babe announced in the FT 
Charlotte Lucy Jennifer 
McGowan born m the Royal 
Free on Friday 30 October. 
Marian is mam, Micfaeal 
father, Judith, Timothy, 
Afios, Giselle are all 
frightfully pleased as wefl.” 


NOTICE IS HEREBY GIVEN (hat a Pelttloa eras 
on the 2nd November 1907 {wanted to Her 
Malasof High Coat at Justice lor the coaflmw- 
tion of lha cancellation ol tot Share Prertom 
******* of toe show nested Coogw^ amounting 
to £211X89,448. 

AND NOTICE IS FURTHER GIVEN to* the said 
Petition b dheetod to be heard before the Homur- 
**4a Mr Juetka GBwne at the Hoyol Courts ol 
Justice, Strand, Umftm. WC2A ZLL on Monday 
TO day of December 1487. 

ANY creditor or shareholder of tor said Compaiw 
dnMag to appose (he making of an Order of the 
coolirmrtlan of the told ceneflation of na Share 
■’"mum Account should meat at toe time of 
iNaHqg ta person or Iv Couaiel f»r thM ptopOSO. 

A copy of tin ay Petition win b« fvmUbed to any 
ludi ptnon requiring the same by the wier men- 
tioned Solicitors on payment of the regulated 
(huge lor tot siiml 
Dated this 23th day of Noweobor 1487 
CatowEmuL 
9/10 Sheffield Strait, 

London 
WC2Y2EY 
Tat 01 am 0701 

SotieRon far the oboe* named Ceeapeny 



SELL YOUR HOUSE 


n 

1 
1 
1 


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Financial Times Saturday November 28 1 987 


FINANCIAL TIMES 

BRACKEN HOUSE, CANNON STREET LONDON EC4 P4BY 
Telegrams: Finantimo, London PS4. TeJeoc 8954871 
Telephone: 01-248 8000 


Saturday November 28 1987 


Exchange rate 
confusion 


How many exchange rate poli- 
cies does the Government have? 
More thari one, it would appear 
from remarks of the Prime Min- 
ister and the Chancellor of 
Exchequer, whose differences of 
emphasis suggest important dif- 
ferences in underlying approach. 

In her interview with the 
Financial Times published on 
Monday, the Prime Minister not 
only rejected membership of the 
exchange rate mechanism of the 
EMS, but denied that there was a 
commitment to a specific range 
against the D-Mark. It is one 
thing to run your exchange rate 
near to a particular band for a 
while, she noted, but “everyone 
knows that you are not con- 
strained by that band and you 
can come off it today or tomor- 
row if you wish." 

By way of contrast, in his 
speech at the Mansion House on 
4 November 1987. the Chancellor 
remarked that there should be 
no “doubt of our commitment to 
maintain a stable exchange rate, 
with the rate against the deut- 
schemark being of particular 
importance.” But what is the 
value of a ‘commitment” that 
one can abandon “today or 
tomorrow?” 

There are two quite distinct 
arguments for managing- 
exchange rates. One is that a 
firmly fixed exchange rate can 
give a nominal anchor for the 
economy. The second is simply 
for exchange rate management, 
The rate is adjusted, as required, 
to ensure consistency with 
important nominal prices. The 
role of the authorities is to 
reduce unnecessary instability in 
the real exchange rate by specu- 
lating against destabilising spec- 
ulators. 

Classic story 

The failure to make a firm 
commitment gravely undermines 
the force of the policy. So the 
Prime Minister's opposition to 
the exchange rate mechanism of 
the EMS is, indeed. Important. At 
the same time, it permits flexi- 
bility. A question raised by the 
discussion in the National Insti- 
tute Economic Review, published 
this week, is whether that flexi- 
bility should be used to lower 
interest rates and perhaps the 
exchange rate further. 

Throughout 1987 monetary 
policy has been bedevilled by the 
contradictory indications given 
by the exchange rate, on the one 
hand, and the growth of credit, 
money and GOT, on the other 
hand. . 

It has not been difficult to con- 
struct a classic story of monetary 
disequilibrium, since the ratios 
of most monetary aggregates to 
nominal GDP in the UK are now 
at or above the levels reached in 
1974. Furthermore, the expan- 
sion has been associated with 
rapidly rising asset prices and 
above trend economic growth, 


"I VE SPENT 99 per cent of my 
time here trying to ensure a 
future for council housing,* said 
Paul Mugnaioni, Glasgow's direc- 
tor of housing, with more than a 
hint of annoyance. That room- 
ing a Glasgow councillor had 
accused him, on the front page 
of the Glasgow Herald, of being 
like a captain who deserts his 
ship when it's in trouble. 

The reason for the accusation 
is chat Mr Mugnaioni (pro- - 
nounced Moon-yi-o-nee) is leav- 
ing Glasgow District Council to 
set up Quality Street, an unprec- 
edented joint venture in private 
rented housing by the Nation- 
wide Anglia Building Society and 
four officials of Glasgow housing 
department, led by Mr Mug- 
naioni. Through Quality Street, 
the Nationwide Anglia intends to 
invest £600m in rented housing 
over the next five years, starting 
in Glasgow and going on to other 
urban areas in Scotland and 
England, including London. It 
hopes to own and manage 40,000 
homes by 1992. 

The move has been greeted 
with delight by Conservative 
ministers in Scotland, as a sign 
that the Government s policy of 
encouraging the private sector to 
return to rented property is 
working even before its housing 
legislation ia passed. 

And their pleasure Is increased 
by the fact mat Mr Mugnaioni is 
not only a Labour Party sup- 
porter, but also the leading fig- 
ure in public sector housing in 
Glasgow, a Labour stronghold. 
But one Labour councillor’s 
accusation that Mr Mugnaioni is 
In effect ratting on council hous- 
ing is not shared by other coun- 
cillors, who more diplomatically 
wish him welL 

Mr Mugnaioni, who is 38, is far 
removed from most people's idea 
of a local bureaucrat. He ia open 
and relayed. As befits someone 
who is three-quarters Italian by 
birth and spent most of his first 
eight years in Italy - he didn’t 
start learning English until he 
was eight - he wean smart suits. 

Mr Mugnaloiu's parents used to 
run a cafe in Gourock on the 
Clyde, while their son took a 
first class degree in architecture 
at Stratchclyde University and 
then went on to work for the 
Greater London Council. He 
returned to Glasgow in 1979 and 
has been director of housing for 
five years. 


both symptoms of disequilib- 
rium. 

Nevertheless, the differences 
between the two periods look 
more persuasive than the ^Hi- 
larities. It is difficult, therefore, 
to fault the Chancellor for avoid- 
ing a monetary policy, dictated 
by possibly temporary domestic 
monetary conditions, whose 
effect would have been to make 
sterling the strongest currency hi 
the developed world. A monetary 


policy giving stability in the 
exchange rate against the 
D-Mark has looked a sensible 


compromise. 

i 

Overall productivity 

Have developments since the 
stock market crash changed that 
calculation? 

The first consideration is that 
growth in 1987 will be about 4 
per Cent, while the Treasury 
projects 3 per cent growth in the 
non-oil economy next year. The 
National Institute expects the 
rate of growth to fall to 1J5 per 
cent in the year from the fourth 
quarter of 1986 but such pessi- 
mism is not unprecedented and , 
may prove unjustified. 

Second, earnings growth has i 
inched up to 8 per cent a year, 
while the trend growth of overall ; 
productivity is unlikely to 1 
exceed 2% per cent, suggesting 
that it may be difficult to keep 
the rate of Inflation below 5 per 
cent a year in the long term. 

Finally, rotes of interest need 
to be kept positive in real terms 
if the liquidity now in the econ- 
omy is to be willingly held. 

All this suggests considerable | 
need for caution. Yet the' govern- 
ment has a margin of manoeu- 
vre. Real rates of Interest before 
tax are in the 4 to 5 per cent ; 
range. The pound has appreci- 
ated since the beginning or 1987 
by 9 per cent against the D-Mark. 
Interest differentials vis-a-vis 
West Germany are more than 5 
per cent on short term money. 

Certainly, there is little argu- 
ment for maintaining interest 
rates at levels that make sterling 
strong against the D-Mark, espe- 
cially once unstedlised reserve 
accumulation can itself be an 
important source of monetary 
expansion. There should not be 
too great concern if gains against 
the D-Mark experienced so far 
this year are reversed. It may be 
possible for the Chancellor to 
make a contribution to interna- 
tional economic cooperation by- 
cutting interest rates a little, 
though it is not surprising that 
he wishes to preserve his options 
for that occasion. 

The firm exchange rate link 
has much to recommend it The 
concept should not be aban-i 
doned just because the Prime 
Minister opposes it but if the 
Treasury continues to interpret 
the licence to flexibility flexibly, 
the confusion may even turn out 
to be useful. 


Victor Mallet visited Matabeleland shortly before this week’s massacre. 
He describes the lonely life of the local white farmers 


THE SLAUGHTER Of 16 
I unarmed people near the 
southern city of Bulawayo is a 
brutal reminder that more than 
seven years after Zimbabwe's 
battle for independence ended a 
different war continues, waged 
by bandits without a dear cause. 

Zimbabweans have been horri- 
fied by the murders at a coopera- 
tive farm run by lay mission- 
aries. Most of the 16 whites 
killed were women and children 
who were hacked to death by the 
raiders. 

Missionari es and farmers were 
in the front line of the guerrilla 
struggle which brought Mr Rob- 
ert Mugabe to power in 1980, the 
forma: caught between conflict- 
ing demands of the guerrillas 
and the white government, the 
latter playing a vital role as part 
time members of the security 
forces. 

The transition from Rhodesia 
to Zimbabwe did not, however, 
bring peace to the south western 
province of Matabeleland. 

The ‘dissidents*, as Mr 
Mugabe's government terras the 
rebels, may sometimes be moti- 
vated by revenge, as seems to be 
the case with the latest incident, 
which followed the eviction of 
sqUatters from a mission farm. 
More often it reflects a 
long-standing political feud 
between the Ndebele people of 
the province and the country's 
Shona majority who dominate 
the government of Prime Minis- 
ter Robert Mugabe. 

Whatever the motives, the iso- 
lated missions and farmsteads 
are once again in the front line. 
For the white termers of the 
province - unlik e their counter- 
parts in the rest of the country, 
where peace returned - the ritu- 
als of self defence remain part of 
daily life, as a recent trip to 
Matabeleland illustrated. 

Earlier this month, I visited 
the Kirby family on their cattle 
term about 100 km (64 miles) 
west of the farms where the kill- 


200 m 





HARARE 

ZIMBABWE 

LELAND 



BOTSWANA, 



S.AFRICA 




When the Kirbys have the 
neighbours round .to their farm- 
house for dinner the sideboard is 
cluttered with a large selection 
of pistols and automatic rifles. 

Mr Ted Kirby, 63, favours an 
Uzi submachine gun which can 
be manoeuvred easily in the con- 
fined space of a car in case of 
ambush. His 67-year-old wife 
Jean goes armed with a revolver 
to supervise the first milking of 
the cows before dawn. Militia- 
men assigned to the terra by the 
authorities accompany the Kir- 
bys wherever they go. 

Their dairy term is also threat- 
ened by one of the worst 
droughts in living memory. It 
would be mi understatement to 
say that times are hard in this 
comer of Africa, for white com- 
mercial termers and black cat- 
tle-owners alike. 

Since 1982 more than 50 white 
tenners and members of their 
families (and several tourists) 
have been shot dead by ‘dissi- 
dents* In Matabeleland and the 
neighbouring province of Mid- 
lands. This u many more farm- 


Trapped by a 
shadowy war 


a one-party state, wn many 
members Of Zapa are ftot ew- 
vfoced that their interests will be 
best served by Incorporation into 
Zanu (PF) and the allocation to 
them of some token posts to the 
cabinet. ' . 

The first indications were that 
the talks may not be Jeopardised 
by the mission massacre, 
although the episode could yet 
put them under strain. Mr Enoa 
Nkala, the Home Affairs Minister 
who plays a key In 
negotiations, made it -clear ires- 
today that he did not regard the 
killings as politically inspired, 
blaming instead what he called 
“the squatter problem”. . 

The Kirbys are scanning the 
skies as well as the newspaper 
headlines for signs of hope. The 
drought is t be overriding prob- 
lem,' says Mr Kirby. 

Dry at the best of times, the 
land h parched after successive 
years of poor rain. The Mananda 
dam, which is supposed to irri- 
gate Mr Kirby’s pastures and 
where people once water-skied. 
Is all but empty- Fine and euca- 
lyptus trees are dying and falling 
over. Fed with chopped leaves 
and branches from uie bush for 
want of grass, the Kirbys' 160 
cows are yielding less than two 
thirds of the milk they produced 
last year. 

In the communal lands nearby, 
the villagers say the gods are 
angry. Thousands of cattle - tra- 
ditionally the measure of wealth 
for the Matabele - have died in 
the region, and many of those 
which remain are emaciated and 
dose to death. The water table 
has dropped, boreholes and dams 
have dried up and people have to 
walk for miles to scratch deep 
into sandy riverbeds for wider. 
The shortage of strong cattle 
means difficulties with plough- 
ing. There is strict rationing of 
water In Bulawayo, Zimbabwe's 


era than were MUed in the region 
during the war which led to 
independence. The number of 
blade Zimbabwean victims of the 
recent insurgency is said to be 
even higher. 

Some whites have given up 
and left, or retreated to Bula- 
wayo from where they make 
weekly sorties to their randies 
and farms. The Kirbys have 
stayed. In partnership with their 
son-in-law and neighbour Mr 
Charlie Ross who married their 
daughter VaL They live near Fig- 
tree about 70km from Bulawayo. 

Morning and evening they 
answer the routine roll-calls on 


their radios to c onfirm that they 
are still alive and unharmed. The 
anti-grenade screens fixed to the 
windows in the war have never 
been taken down. Tanned, rug- 
ged and independent, the Kirbys 
live much as they always have, 
making their own bread and 
jam, doing business on the old 
crank-handle telephone, carrying 
out term jobs from engineering 
to artificial insemination. The 
reading matter in the bathroom 
indudes a 1969 Woman’s Realm 
magazine. oriceSd. 

At night they listen to BBC 
radio, read books and retire 
early. “There's no social life left 
in the area. You don't go out at 
nights,” says Mr Kirby. “We've 
had this situation for about 10 
years now, since the latter part 
of the war. Charlie and Val, they 
feel it more.’ 

In 'the Ross living roam, which 
is pockmarked with bullet holes 
from an unsuccessful wartime 
attack in 1978, the two families 
stand In front of a map of the 
neighbourhood and run through 
the names of friends killed or 
injured by gunmen in recent 
months and years - the Kreidls, 
John Norvau, the Macdonalds 
(Andy Macdonald was a fanner 
and rugby player famous for 
having fought and killed a lion 
which attacked him), Trevor 
Smith, Ian Burchell - the list 
goes on. 

‘Some people have left,” says 
Mr Kirby, who came here from 
England in 1947 and joined the 
British South Africa Police 


Man in the News 


Paul Mugnaioni 

A sharp 
mind 
housed in 
a smart 
suit 

By James Buxton 





But he does not see his move 
to Quality Street as the crossing 
of an ideological divide. The 
public sector already plays an 
entrepreneurial role in housing 
in Glasgow,” he says. “As the big- 
gest municipal landlord in west- 
ern Europe we're the market 
leader. But we're now on the 
threshold of a revolution in 
rented property in which the pri- 
vate sector will play a leading 
part I want to be the market 
leads* there." 

He already seems more like a 
businessman than an official. 
"Having become housing director 
of Glasgow at the age of 31, 
there weren’t many other jobs I 
could have gone to In local gov- 
ernment,” he said. “I would nave 
been happy to stay for another 


five years if this hadn’t oome 
along.* The move means a “mar- 
ginal” improvement in his 
S36,000 a year salary. He will 
stay in his owner-occupied flat 
in a tenement building in Hyn- 
dland, a middle class part of 


s The city has horrifying hous- 

1 ing problems: it has 170.000 
,- council properties, most of them 

2 built in the post-war period 
t when some of Britain’s worst 

mistakes in building technology 
a and housing amenity were made, 
i. It is estimated that It would cost 
r £2bn to renovate all the decayed 
. council property in Glasgow. 

I But squeezed between the 
extreme reluctance of the elected 
b council to ruse rents and the 
r Government's parsimony with 


housing support grant, the hous- 
ing department has had to find a 
variety of partial solutions to the 
problem. He c l ai m s that some of 
his policies have brought the pri- 
vate sector into areas where it 
would otherwise never have 
gone. 

He is convinced that while the 
council must charge more realis- 
tic rents, the Government should 
keep up the level of housing sup- 
port to give the council a finan- 
cial breathing space in which to 
catch up with repairs. But he 
recently ensured that Glasgow 
was well prepared to finance 
improvements by negotiating a 
S140m loan from the private sec- 
tor and thus feels he is leaving a 
sound ship. 


before he switched to farming. 
“But the opportunities to leave 
are not all that easy. You can't 
realise your assets and what you 
realise, you can’t take with you. 
Financially you're trapped. The 
other thing is that I doin't think 
people want to go. They would 
prefer to stay here.” 

The more people leave, the 
more dangerous and Isolated life 
becomes for those commercial 
farmers who remain. “We are 
very concerned at the distance 
between the farms that are occu- 
pied," he says. "Between us and 
Bulawayo there used to be six 
resident farmers. There’s not one 
today.” 

After an attack, the farmers 
will join the security forces in 
expeditions through the bush to 
try to trade down and kill the 
perpetrators, called “gooks” by 
same of the farmers after tire 
term used for the enemy by 
American soldiers in Vietnam. 

No one is sure what motivates 
these shadowy figures who live 
by the barrel of a gun. Many are 
ex-combatants from Zipra, the 
Zimbabwe People's Revolution- 
ary Army which was the mili- 
tary wing of Dr Joshua Nkomo's 
Zapu party during the war. A 
few may simply be unemployed 
youths looking far wealth and 
adventure, what is certain is 
that Zapu and the 1.7m people of 
Ma t ab e l elan d, outnumbered four 
to one by the ruling Shonas, bear 
many grudges against the Zonu 
(PF) government of Prime Minis- 
ter Robert Mugabe far away In 

“He’s very good at talking tur- 
key with financiers," said a Glas- : 
gow councillor who did not wish 
ttf be named. “He’s been a good 1 
leader of the housing depart- 
ment, hut you’ve got to remem- 
ber that these policies are joint 
efforts between the housing 
department’s staff and a number 
of councillors. Where Mugnaioni 
is good is In backing up ids staff 
and being open to ideas.” 

The idea for Quality Street 
came only In October when Mr 
Mugnaioni met Tim Melville- 
Ross, chairman of Nationwide 
Anglia, over lunch. Both of them 
were aware that the thinking of 
both the Government and the 
Labour Party on private rented 
housing was changing. “The 
Government no longer relieves 
that 90 per cent of all household- 
ers will eventually be owner-oc- 
cupiers,” says Mr Mugnaioni. 
‘Labour is beginning to think 
that the rented sector in Britain 
has to be modernised.* 

Quality Street intends to rent 

good quality housing to those 
categories of people who lose out 
from the present bias towards 
owner-occupation: such as young 
people and students, people mov- 
ing from (me part of the country 
to another, people getting 
divorced and people who are 
quite content to rent but would 
like to move somewhere else - a ! 
near impossibility In many cities, i 

The first homes are likely to ! 
become available In Glasgow 1 
early in the new year, as Quality 
Street aims initially to purchase 
new properties from developers. 
It will set high standards of qual- , 
ity and tenants will be repre- 
sented on management boards. -. 
Some properties wm be let fur- 


the capital Harare. 

The government has repeat- 
edly cracked down on Zapu, 
blaming its leaders and the 
South Africans for the Matabele- 
land killings. Bat some senior 
Zapu officials, already resentful 
about what they see as the eco- 
nomic neglect of their region, 
believe the government itself has 
at times orchestrated the activi- 
ties of the bandits in order to 
discredit Zapu. 

When the Zimbabwean army’s 
North Korean-trained Fifth Bri- 
gade swept through Matabele- 
land in brutal campaigns to end 
the banditry in 1983 and 1984, 
hundreds of the Matabele were 
killed. Some were said to have 
fled the country and to have 
been recruited by South Africa. 
Recently, however, there has 
been little evidence of direct 
South African involvement, 
although South Afridah radio 
propaga n da is beamed to the 
area in the local Ndebele lan- 
guage. Farmers say dissidents 
killed recently had did weapons. 
The South African toothpaste 
and radio batteries found on the 
dead, are likely to have been 
bought in neighbouring Bot- 
swana. 

A more immediate concern is 
that the Matabeleland gunmen 
might link up with the better- 
equipped rebels of the Mozambi- 
que National Resistance who 
have begun to launch attacks 
into eastern Zimbabwe. "We’ve 
so far been spared things like 


landmines and rockets,” says Mr 
Kirby. 

In Matabeleland and the Mid- 
lands dissidents have terrorised 
people into giving them food and 
shelter, burned down slums and 


shops and 


murdered informers. But they 
have also taken advantage of 
superstitious villagers and 
exploited local grievances 
against commercial farmers, por- 
traying themselves aa Robin 
Hood figures who steal from the 
rich and give to the poor. 

A recent happy topic of con- 
versation in the Kirby household 
was the reported killing by the 
security farces in the Midlands 
of the notorious dissident Rich- 
ard Gwesela, who roamed the 
country for several years and 
who was credited with the 
deaths of more titan 30 people. 
Gwesela, widely believed to have 
magical powers enabling him to 
tiro himself into a snake or a 
tree to avoid capture, had a price 
of 50,000 Zimbabwe dollars 
(£16,778) on his head. The gov- 
ernment has said that there are 
only about 100 dissidents left 
alive, but many farmers believe 
the number is h ig h er. 

White farmers such as Mr 
Kirby, valued for their contribu- 
tion to the economy but politi- 
cally on the sidelines, are anx- 
iously following the latest round 
of u nity talks between Z&nu 
(PF) and Zapu and hoping that 
an agreement will help to end 
the troubles. Mr Mugabe, due to 
become executive President at 
the end of the year, is aiming for 


The drought has affected us 
badly,” says Mr Fanyana Nde- 
bele, a villager dressed In ragged 
clothes. “Some people had 30 or 
40 cattle and now they have 
nothing.” The government, 
churches and private charities 
are trying to stave off malnutri- 
tion and hunger by providing 
food to the worst -hit areas, but 
with o ut good rains this season 
thousands of people will have to 
miffaxe to where they can find 
water. 

Zimbabwe's Matabele people, 
descended from the warlike 
Zulus and boasting a proud his- 
tory, face an uncertain future. 
Once the conquerors of the 
Shona, they now find, themselves 
in the minority within Zim- 
babwe's frontiers. 

As fw the local whites, Some- 
times the allies of the Matabele 
In disputes with the cental gov- 
ernment, their role in the coun- 
tryside has been steadily reduced 
by emigration. Banditry and the 
pressure for land, exacerbated by 
the increase in the black popula- 
tion, have taken their toiL 

T miss being able to walk , in 
the bush whenever 1 want,” says 
Mrs Kirby* *£n the peace hut 
after independence we could do 
it again Ear a while.” Wild ani- 
mals - leopard!, kudd, occasion- 
ally elephant - are seen around 
the farm. At one boundary is a 
rockface adorned with the 
ochre-cokxired animal paintings 
of the bushman, earlier inhabit- 
ants even than the Matabele. On 
the other side is a hollow-sound- 
ing lump of granite worn down 
by ceremonial drumming 
designed to encourage the rain. 

“Our worst period has been 
since July,” says Mr Kirby. “I've 
got ho plans to leave. But I must 
say I look at the grass and the 
empty dam and I wonder what 
I'm going to da” 




.roil 



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Some of the first ones are 
likely to be nearer the higher i 
end of the market. But the main 
aim is to offer homes at “afforda- 
ble* prices, which may depend in 
part on the Government provid- 
ing increased housing benefit for 
tenants, while eventually Mr 
Mugnaioni hopes that it will 
'neutralise” the tax advantages 
of owner-occupation. Thus the 
scheme depends in part on the 
Government changing the rules. 
But the fact that Quality Street 
exists and, four days after being 
launched, is already receiving 
enquiries, may give it an incen- 
tive to do so. 


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Financial Times Saturday November 28 1987 


Michael Skapinker and Nikki Tait report on the fate of option schemes since the stock market crash 

IN THE YEARS before the stock - w - - w - m ^ •m "W 

sis Worth taking the knocks 


IN THE YEARS before the stock 
market crashed, few British 
executives were prone to spend 
their time worrying about 
whether there was a superior 
being who sternly disapproved of 
their newly found riches. 

If, however, there were any 
senior managers who harboured 
such anxious thoughts, the tim- 
ing of the crash must nave con- 
fumed their fears. For it came at 
the very moment when some of 
them were preparing to cash In 
their executive share options, 
thereby realising huge profits on. 
the back of what had seemed an 
unstoppable bull market. 

Over the past few yean, the 
executive share option scheme 
has become a familiar feature of 
British corporate life. A survey 
published at the beginning of 
October by Charterhouse, the 
merchant banking and financial 
services group, showed that 77 
pea* cent of board directors in' 
companies with a turnover of 
between 5300m and 51 bn held 
share options. In companies with 
a turnover of more than Slbn, 
the proportion was 97 per cent. 

As long as share prices 
remained on a steeply upward 
path, “a lot of directors thought 
it was money for jam,” says Mr 
Peter Brown, of the Reward 
Group of remuneration consul- 
tants. The 1984 Finance Act, 
under which most of the 
schemes were introduced, allows 
companies to offer employees 
options worth four times their 
emoluments. Unlike previous 
Inland Revenue approved 
schemes, the options do not have 
to be made available to all 
employees with a certain length 


THERE HAS never been a 
chairman of Lloyd's of London 
quite like Brook Watson. He 
held the poet for ten years at 
the time of the Battle of Trafal- 
gar. He was also Lord Mayor, 
stomping around the City on a 
wooden leg after a shark ate his 
natural appendage. 

The latest successor to the 
chair of Lloyd’s, due to be 
named in four days' time, is 
unlikely to be quite so colour- 
ful. But the 180 years since 
Brook Watson have wrought 


surprisingly few changes in the 
way the Lloyd's insurance mar- 
ket chooses its leader. 

On Wednesday morning, the 
27 men and one woman who 
form next year's ruling Council 
of Lloyd's will gather under the 
chandeliers or the insurance 
market's Committee Room for a 
preliminary meeting to decide 
on their 1988 chairman. It is 
likely to be an elegant formal- 
ity. 

As one council member put it: 
“I have been asked to roll up 
for what I confidently expect to 
be the Feast of the Enthrone- 
ment of St Murray.” 

The Murray in question is a 
large, jovial Wykehamist, Mur- 
ray Lawrence. He is the senior 


of service. They can be granted 
to directors or senior' managers 

"9fc most attractive aspect, 
however, is that benefidanes of 
the schemes are only liable for 

capital gains tax, not income tax, 
on any gains they make. But to 
escape income tax, they have to 
wait three yean before exercis- 
ing their options. 

Some companies - Jaguar, for 
example - had schemes which 
reached the three-year mark 
before the crash. But with those 
Introduced at the end of 1984, 
executives saw a large, propor- 
tion of their expected min blown 
away when the stock market 
bubble burst 

It must have seemed a cruel 
blow. Sir Ralph Halpem, chair- 
man of the. Burton Group, had 
already shown that managers did 
not have to leave the security of 
corporate life to become rich. 
Last May, for example, he exer- 
cised options on 64o,000 shares 
at 23p and then sold the shares 
at 32 ip - making a £L6m profit 
As the options had been granted 
six years ago, before the 1984 
Finance Act, Income tax (rather 
than capital gains tax) had to be 
paid on the profit. 

Sir Ralph's salary, much of it 
performance related, is now 
£1.3m. Earlier this year he 
gained shareholder approval for 
a scheme granting min options, 
with a paper value of 52.5m, on 
condition that his company 


pjji •>; 

~ -77 . * '• < *‘n* 



Minay Lurvbck large sadjsrial 

among the market's three dep- 
uty chairmen, and has worked 
closely with the c ur re n t chair- 
man, Peter Miller. 

At 52, with all his limbs 
intact, he is a professional non- 
marine underwriter. He started 
at Lloyd’s in the 1960s, first 
making his name as a reinsur- 
ance man with C.T. Bowring, 
the blue-chip London insurance 
broking house. He is now senior 


achieved some testing targets. 
His example offered his counter- 
parts in other companies a 
chance to set out on the same 
road. The stock market crash is a 
warning that the journey might 
not be all that easy. 

‘For those people who hold 
options that they got before the 
crash it’s been a salutonr experi- 
ence,* says Mr Charles Bracken, 
Burton's group personnel direc- 
tor. 

Provided they have not 
already borrowed on the expec- 
tation of their windfall, option 
holders can, of course, just wait 
for share prices to pick up again. 
Under the 1964 Act, exemption 
from Income tax on their options 
is good for another seven years. 

However, Mr Laurie Brennan, 
chief executive of -New Bridge 
Street Consultants, argues that it 
might be sensible for executives 
to exercise their options now. 
Although company share prices 
have fallen, they are still, in 
most cases, a good deal higher 
than they were three years ago. 
“Most people will have doubled 
their money rather than tripled 
it,* he says. 

Having exercised their options, 
he says, those same executives 
might want to look for another 
job. A new employer could offer 
them another set of share 
options worth up to four times 
their salary. Their own employer 
might not be able to offer them 
anything. 


The reasons for this have noth- 
ing to do with the law. The 1984 
Act allows employees to hold 
options worth four times their 
remuneration at any me time. 
An executive who exerrises his 
options now can, as far as the 
Inland Revenue is concerned, 
receive new ones at today's 

attractively low share prices. He 
will still be exempt from income 
tax, provided he does not exceed 

the four times earnings limit 
The only constraint will be that 
he will have to wait another 
three years before he exercises 
any further options. 

It is the institutional investors, 
anxious to avoid dilution of their 
holdings, who object to execu- 
tives having their share options 
topped up straight away. The 
new guidelines ofthe Investment 
Committee of the Association of 
British Insurers, issued last July, 
Bay that executives should not 
normally receive options worth 
more than four times emolu- 
ments over any 10-year period. 
The ABI says that holders of 
these options should also not be 
permitted to exercise them 
unless the company achieves 
real growth in. earnings per 
share. 

The Insurers are willing to 
accept ‘super options’ - worth an 
additional four times earnings. 
But for these to be exercised the 
company has to meet the target 
adopted by Burton earlier this 
year: earnings per share growth 


over a five-year period which 
places it in the top quarter of the 
FT-8E 100 index. 

Mr Brennan points out that, 
had this measure been applied 
over the five-year period to Sep- 
tember this year, companies like 
ICI and the Prudential would not 
have made it into the top 26, 
despite the fact that their share 
prices grew by 685 per cent and 
280 per cent respectively. 
‘Everyone’s not a Burton by any 
means. There's something wrong 
with a system that fails three 
quarters of the companies,’ he 
says. 

The institutions show no sign 
of further easing up. The 
National Association of Pension 
Funds is expected to issue its 
own revised guidelines during 
the coming months. Broadly sup- 
portive of the ABrs position, the 
pension funds look set to empha- 
sise a simpler, but no less restric- 
tive, set of principles. 

Those executives who received 
options three years ago are, of 
course, better off than those who 
acquired them when the stock 
market was at its peak. In Sep- 
tember, Williams Holdings 
gained shareholder approval for 
a super-option scheme. Among 
the beneficiaries were chairman 
Mr Nigel Rudd and manag ing 
director Mr Brian McGowan, who 
received total options on 450,000 
shares exercisable at 335p. Wil- 
liams's shares have since fallen 
to around the 240p mark. 


Nick Bunker on how Lloyd’s of London chooses a new chairman 

Ringing in the changes 


partner of Murray Lawrence 
and Partners, the fourth biggest 
Lloyd's underwriting agency. A 
yardstick of its importance is 
that it runs non-marine syndi- 
cate 362. And syndicate 362, 
with 5117m of net premium 
capacity this year, plays a lead- 
ing role in London by tidriwg 
North A me ri can p rop erty inaur- - 
aiice, a vital field for Lloyd’s 
since the 1890a. 

Mr Lawrence could still be 
disappointed next week. Mr 
Miller has held the position 
since January 1984, but that is 
well short of this century’s 
record term of seven years, set 
In the 1940s by Sir Eustace Pul- 
brook. 

For months, though, Mr Miller 
has been dropping hints that he 
is - ready to go. This is under- 
standable. He Is 67 and Ids term 
has been tough. Uoyd’s has had 
to implement sweeping regula- 
tory reforms following the 1982 


Lloyd’s Act and the govern- 
ment-commissioned Neill 
report. 

If Mr Miller is going - and 
hardly anyone at Lloyd’s 
doubts it - one reason why the 
succession is likely to be 
smooth is relatively simple. 
Chairmen of Lloyd's have 
always emerged, rather than 
been elected, by an informal 
process that resembles the way 
Tory MPa used to pick their 
leader. 

Until 1983, Lloyd’s was gov- 
erned solely by a Committee of 
working members of the mar- 
ket. when the time came to 
appoint a new chairman, "Mr 
Senior” - the longest serving 
man on the Committee - would 
privately buttonhole each mem- 
ber and ask whom he preferred. 
Once Mr Senior had found a 
consensus, the process was 
over. It meant that the chair- 
man's senior deputy usually got 


the Job. Contested elections 
were almost unheard of. 

By all accounts, this has not 
changed much. The 1982 Act 
set up a new Council, including 


set up a new Council, including a coup three years ago 
outsiders, to govern the market, hired as a right hana-n 
Bat the actual process of elect- Rawlins, a hichly-i 


But tne actual process or meet- 
ing a chairman was never 
spelled out in detail - leaving 
“Mr Senfor” with his old back- 
room role, and Mr Lawrence as 
the natural choice. 

The only other possibility, 
mudi talked about at Lloyd’s 
now, Is 66-year-old David Col- 
eridge. He is an equally large 
Old Etonian underwriter but 
rather grander, with a drier' 
sense of humour and a reputa- 
tion for being more abrasive 
than Mr Lawrence. 

More to the point, he is chair- 
man of Sturge Holdings. Sturge 
has risen to power in the last 
decade as the giant among 
Lloyd’s underwriting agendas, 
controlling 26 syndicates, with 


£1.2bn of gross premium 
income expected in 1988. 

And Mr Coleridge scored 
what other underwriters saw as 
a coup three years a go when he 
hired as a right hand-man Peter 
Rawlins, a highly-regarded 
young accountant who was pre- 
viously personal assistant to Mr 
Ian Hay Davison, the market’s 
first chief executive. Mr Raw- 
lins played the star role in lob- 


bying MPs during this year’s 
tax battle with the Inland Reve- 
nue, and is one of the most stri- 
dent advocates of new technol- 
ogy at Lloyd's. 

There have been unconfirmed 
rumours in the past few days of 
some last-minute backstage lob- 
bying by outsiders on the coun- 
cil to have Mr Coleridge made 
chairman. One reason for the 
gossip is that he came top of 
the recent election for seats on 
the Council, polling 2286 votes 
ito Mr Lawrence’s 2266. 


Proportion of executives 
holding options 


williams says it Is sticking by 
its scheme, but the ABI has been 
approached by othen, mainly 
consultants, asking whether it 
would consent to companies 
scrapping options and replacing 
than with ones at todays lower 
prices. 

Mr Colin Parker, chairman of 
the ABI's Investment Protection 
Committee and general manager 
of Eagle Star, says that nis 
response Is "to strongly recom- 
mend to managements that they 
should think again.' Scrapping 
options and reissuing them 
would be 'opportunism border- 
ing on the worst kind of short- 
termism,* he says. 

Others point out that It would 
also be deeply offensive to those 
shareholders who have suffered 
during the crash. *1 don’t hear 
companies talking about bailing 
them out,* says Mr Don Sullivan, 
vice-president of consultants 
TPF&C In New York. 

What of the future of share 
option schemes? Will companies 
and their sailor managers lose 
their enthusiasm for the idea? 
Mr Neil Shaw, chairman of Tate 
and Lyle, hopes not. Share 
option schemes should be seen as 
a long-term incentive for manag- 
ers, not as a way to make easy 
money in the short-term. 

Mr Shaw advises worried man- 
agers to sit tight. When they 
have held their options for a few 
more years, he tells them, “you'll 
find you can. take some knocks. 


Company 

Ksnovar Em 

Mein board 
directors 

Sank? 

management 

1-40 

62% 

21% 

40-150 

76% 

28% 

150-300 

.. 80% 

20% 

300-1000 

77% 

38% 

'1000 plus 

97% 

70% 




Responsibility for allocation 


Board committee 
Chairman or chief executive 
Board 
Others 

Sourer Chartartunren 




If you look back on it five years 
from now you'll see what's hap- 
pening today as just one dip.” 

Mr Sullivan says that his expe- 
rience of option schemes in foe 
US is that disillusionment takes 
a while to set in. Executives 
remain keen on options for as 
long as they think the market is 
going to resume its upward path. 
If it remains flat for long, how- 
ever, they begin to look towards 



DbvM Coleridge dry hamaor ' 

Another factor is more subtle. 

Oddly enough, Mr Lawrence 
made a speech last month to 
the Insurance Institute of Lon- 
don summing up the issues fac- 
ing Lloyd's - many of them in 
areas where Mr Coleridge is 
especially strong. He voiced a 
common but still rarely articu- 
lated view at Lloyd’s that 
between now and the year 2000 
the market will face serious 


additional cash incentives. 

Will this happen In Britain? 
Probably not, say the consul- 
tants. The main reason Is that 
cash payments are subject to a 
top marginal income tax rate of 
60 per cent, while capital gains 
are taxed at 30 per cent. As long 
as that difference persists, share 
options are unlikely to lose their 
shine. 


commercial challenges requir- 
insjpamful changes. 

Tne marine insurance busi- 
ness - which still makes up 47 
per cent of Lloyd's capacity - 
"appears depress! ngly finite”, 
Mr Lawrence said. 

So Lloyd's has to expand else- 
where, into markets like the 
EG, the Far East, or into per- 
sonal or small business insur- 
ance. But one key handicap is 
that foe market's use of new 
technology and its standards of 
back-office service have lagged 
behind those of its competitors. 

That means that the next 
chairman will be far more both- 
ered about things like computer 
systems and the EC than about 
scandal 8 and regulation. And, 
in some eyes, Mr Coleridge's 
transformation of Sturge into 
the only Stock Exchange-quoted 
Lloyd's underwriting agent has 
given him the right kind of 
management experience and 
authority for the job. That does 
not mean he will get it. A com- 
mon view at Lloyd's is that he 
is too decent and dignified to 
want to stand in Mr Lawrence’s 
way, and that in any case 
Sturge - which is still expand- 
ing fast - stfll needs him too 
much. 





Wiring regulations 
should be revised 

From Mr Ken Kolb 

Sir, Fires in FaTklands ships, 
the Manchester Airport disaster 
and now at Kings Cross have all 
exposed the fatal effects of 
smoke and poisonous gases given 
off from burning cables. 

London Transport has for sev- 
eral years been using radox insu- 
lated cables. These irradiation 
cross linked polyolefin materials 
can be formulated so as i to not 
produce smoke or poisonous 
gases when burnt. 

One lesson we could learn 
must surely lead to an urgent 
revision of the standards for 
cabling in public buildings - of 
all types - to make the use of 
radox type insulation compul- 
sory. 

Those who can influence 
building regulations, and in par- 
ticular wiring regulations, do not 
need to wait for foe enquiry into 
the cause of this latest disaster to 
report before they act. Nor .In- 
deed, do those specifying new 
public buildings need to wait to 
be regulated. 

Ken Kolb, 

Managing Director, 

Snhner Electronics Limited, 
Telford Road, 

Bicester, Oxfordshire 

Sudan’s surplus 
could help Ethiopia 

jFYorn Mr Charles G- Gordon. 

Sir, As the threat of famine in 
northern Ethiopia grows, a par- 
tial solution could be at hand m 
neighbouring Sudan. After the 
devastation of the 1984-85 
drought, Sudanese agriculture 
has achieved a remarkable turn-' 
around. Indeed, there is now an 
embarrassing surplus of food 
which cannot all be stored. This 
season foe Agricultural Bank of 
Sudan, (ABS) bought eight mil- 
lion sacks (720,000 tonnes) of 
surplus sorghum, which is the 
staple crop in both Sudan ana 
Ethiopia. Most of this Is stored 
within 100 miles of the border 
with Ethiopia's famine-afflicted 
northern provinces. 

Rather than sending wheat 
from around the world, the 


Letters to the Editor 


international community should 
be buying Sudanese surplus sor- 
ghum ana transporting It across 
the border into Ethiopia. Such a 
solution would have numerous 
advantages: 

1. It would be a cheaper, quicker 
and easier method of getting 
food to the affected areas. 

2. By sending sorghum instead, a 
permanent demand for wheat - 
which demand would have to be 
met by expensive imports In foe 
future - would not be created. 

3. It would provide Sudan with 
valuable foreign exchange, con- 
tributing towards a cure of in 
own dire economic problems. 

4. It would help Sudan reduce 
the problem of staring so much 
surplus grain. 

5. It might stem foe flood of 
Ethiopian refugees, already num- 
bering almost one million. 

An additional, very important 
result could be a rapprochment 
between the neighbouring coun- 
tries, and an eventual end to 
Ethiopia's support of. the rebel 
Sudanese People’s Liberation 
Army, (SPLA). This in turn 
could lead to a settlement of 
Sudan's own civil war, which la 
currently responsible for severe 
malnutrition in southern Sudan. 


Charles G. Gourdon, 

116a Palmerston Road, El 7 

Pharmaceutical 
patents at risk 

From the Director qfPubUc and 
Economic Affairs, The Associar 
Hon of the Sntish Pharmaceuti- 
cal Industry. 

Sir, Your item in “Men and 
Matters* (November 18) perpetu- 
ates the claim that the proposed 


ates the claim that the proposed 
repeal of the transitional 'licence 
of right” provisions of the 
Patents Act 1977 as they would 
apply to a very limited number 
or pharmaceutical products 
could cost the National Health 


substantially. 


Service up to 5250m. 

This figure, promulgated by a 
firm of Parliamentary lobbyists, 
(representing two non-innova- 
tive pharmaceutical companies 
which stand to gain further from 
the retention of licences of 
right), has been repeatedly 
denied in the House of Lards. As 
recently as November 12, when 
the Copyright, Designs and 
Patents Bill received a Second 
Reading in the Upper Chamber, 
Lord Beaverbrook, the Govern- 
ment spokesman, told the House: 
■We believe that foe likely extra 
cost to foe National Health Ser- 
vice which will result from the 
provisions in the Bill which will 
exempt pharmaceutical patents 
from the licence of right provi- 
sions in the Patents Act will be 
between 55m and 58m spread 
over the next 10 years*. (Han- 
sard, column 1587, November 

Britain gains substantially 
from its pharmaceutical sector,' 
which contributes 5860m a year 
to the country’s balance of trade. 
Yet pharmaceutical patent pro- 
tection is today so eroded in this 
country that products now enter-' 
ing foe market have, on average, 
an effective patent term of less 
than eight years, even Including 
the period of 'patent sharing 
resulting from licences of right 

Quite apart from the repeal of 
the latter, pharmaceutical patent 
term restoration should be seen 
as an urgent national objective. 
Japan, the world's largest net 
medicine importer, is currently 
taking action to restore its 
domestic medicine patent term 
to an ‘on the market” average 
figure of approaching twice that 
now observed in the UK, so as to 
stimulate its indigenous pharma- 
ceutical research and invest- 
ment. 

David Taylor, 

ABPJ, 

IS Whitehall, SW1 


Loopholes will 
be dosed 

From Mr Graham Riddick MP. 

Sir, According to the report 
from the Local Government 
Information Unit (November 16), 
as a result of the Local Govern- 
ment Bill “national agreements 
with unions will be broken up 
and this wOl lead to lower wages 
and reduced conditions, ana a 
lack of training and equal oppor- 
tunities even if private contrac- 
tors take on existing staff.” 

Unfortunately the LGIU is not 
an independent body: it is 
funded primarily by left-led 
Labour authorities and conse- 
quently only puts one side of the 
argument 

In 1980 the Planning and Land 
Act required council's direct 
labour organisations (DLOa) to 
tender competitively for ele- 
ments of work previously allo- 
cated directly by the council. In 
many cases xt was successful in 
redudng the burden on ratepay- 
ers; DLOs were forced to become 
competitive if they were to sur- 
vive. 

Contract compliance was con- 
ceived by some Labour-con- 
trolled councils as a way of 
avoiding the provisions of the 
Act. By Insisting that private 
contractors adopted foe same 
inefficient standards as the 
DLOs, it cushioned the latter 
from the rigours of the free mar- 
ket by stiffing competition. 

The Local Government Bill 
wOl dose the loopholes of the 
1980 Act and is long overdue. Its 
real effect will be to make coun- 
cil services more efficient, thus 
benefiting the ratepayer and the 
economy as a whole. 

Graham Ridd ick, ■ 

House of Commons, SW1 


No Hoover -for 
Mr Reagan 

FromMrA.W. Houston. 

Sir, Investors who make deci- 
sions based on comparisons 
between October 19 1987 and 
October 29 1929 should be very 
wary in assuming that a reces- 
sion will be foe immediate result 
of the Wall Street ML After the 
post-war inflation of 1020 there 
was secular decline in the yield 
of the Long Bond until 1940, and 
the yield curve became negative 
in 1927, with an associated Ml 
in commodity prices and housing 
start-ups. 

Today the yield curve (aa 
shown in the FT's US Money and 
Credit) is firmly positive, many 
commodities are bullish, and the 
level of housing start-ups contin- 
ues at around 1.6m. 

Mr Reagan's political hero is 
Calvin Coolidge, who was Presi- 


dent during the American boom 
years until 1928, when Herbert 
Hoover succeeded him. Hoover's 
performance Is still widely 
regarded as letting in the Demo- 
crats for a term of 16 years in 
office; and there would seem to 
be no way in which the present 
President would wish to be 
branded with the same image. 
On this premise we cannot 
expect a flattening of foe yield 
curve - indeed, this is likely to 
steepen, as even more liquidity is 
injected into the US economy. 

For an historical fix* foe idk- 
likely position is 1979, when 
President Carta went all out for 
growth before the 1980 elections. 
If this is a correct analysis, port- 
folios should be heavy In mining 
shares and light in bonds for at 
least the next year. Looking to 
1989 and 1990, however, the 
position would appear to be full 
of peril: Investors and managers 
should be looking back over 
their shoulders at the events of 
3929 and the subsequent slump 
of the 1930s. While there are dis- 
similarities between 1929 and 
the present state of affairs, there 
are sufficient pitfalls for inves- 
tors to be aware of a major 
change in their environment. 
A.W. Houston, 

22 Austin Friars, EC2. 


To do the job, the fall of the dollar will have to be greater 


From the Treasurer, Labour 
Economic Policy Group. 

Sir, The rate of exchange, like 
the rate of interest, is a maricetr 
clearing mechanism. In both 
eay» s foe equilibrium rale Is that 
which enables the market to be 
cleared in conditions of full 
employment at a high ana sus- 
tainable rate of growth It fal- 
lows that in an ever-changing 
economic world any attempt to 
stabilise rates of exchange for 
any length of time must be coun- 
terproductive 

The present is no exception. 
The quickest and most effective 
way to stabilise foe market is to 
change investment expectations 
by letting the overvalued cunen-. 
des fall to a competitive leveL 
Your plea (November 7) for a 


■managed” decline is unrealistic 
because it assumes that the sun- 
plus countries would agree to 
what is required, and that foe 
decline could then be managed 
without sending false price sig- 
nals to the real economy. 

The msk is immense. The US 
balance of trade in manufactur- 
ers in terms of 1986 unit values 
fell from a surplus of S61bn in 
1980 to a deficit of Il37bn in 
1986. The tenns of trade rose by 
14 per cent between 1979 and 
1986 as a result of an Increase in 
the real exchange rate against 
the Deutsche Marie and the yen 
of 38 and 23 per cent respec- 
tively. Imports rose J126bn and 
exports feu S76bn. The US share 
of the volume of world exports 
fell by the equivalent of $336bn. 


The 20 per cent foil In the 
dollar to DM 1J38 in the year to 
January did little more than stop 
the rot. In the year to June, 
impart prices rose 5 pa cent to 
only 15 pa cent above the 1960 
figure, and export prices 2 per- 
cent to 80 per cent above. The 
corresponding figures for import 


volume were 3 and HO pa cent, 
and to exports 13 and minus-7 
pa cent The deficit was undi-. 
minished. 

The recent foil in the dollar 
will helpto dose the gap, but 
the nomind rate needs to fen by 
another 8 per cent against the 
EC currencies to reduce the real 
rate to the 1980 leveL In practice 
the fan wUl have to be much, 
greater than this to do the job 
because markets once lost a!re 


difficult to regain, because the 
US has lost some »16bn of trade 
as a result of the CAP, and 
because the increase in overseas 
debt has to be financed by 
increased expats. 

Hie US trade deficit, like - our 
own, is due to a massive increase 
in the value of the domestic cur- 
rency - 65 per cent under 
MrVokker and 47 per c enL com- 
pared to foe level agreed with 
the IMF, under Mr Lawson. It 
has very little, If anything, to do 
with the budget deficit, and It is 
symptomatic of our Ills that the 
Chancellor should think other- 
wise. Reductions in defence and 
welfare expenditure will not 
reduce the demand to Jaguars. 

The EC will in any case have 


to face a reduction in its bade 
balance with foe US in manufac- 
tures, of at least S56bn, in addi- 
tion to a reduction in exports to 
the rest of foe world. The UK 
share of this amounts to about 
$6bn, but sterling Itself is grossly 
overvalued and should be 

allowed to fall by at least 25 per 
cent to recover the ground lost 
since late 1976, when the UK 
undertook to stabilise foe real 
exchange rate. The Government 
did not hesitate to let the 


year. They should do the same 
again in the national interest. 
Shaun Stewart, 

Labour Economic Policy Group, 
72 Albert Street, NW1. 


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l 




Financial Times Saturday November 2S 1987 


UK COMPANY NEWS 


Red Cheek 
losses force 
Bulmer out 
of the US 


US acquisitions help 
Siebe rise above £50m 


BY CLAY HARRIS 


ByNMaTatt 

H. P. Bulmer, toe Hereford- 


Siebe, the controls, engineer- 5225m lights issue which dosed 
ing and safety equipment group, in October. However, Siebe's 


increased interim pre-tax profits businesses are also now generat- 
or 2 % times to £50.7m in the six tag cash at an annual rate of 
months to September 30. Two Si" 


group, has US acquisitions accounted 

SSErtSLi? ?***??? formore than half of the total. _ 


Robertshaw Controls and live figure were restated to 
end by seuing Its loss-male- Ranco toget h er contributed reflect Siebe’s move to average 

526.4m, with the smaller W.H. rather than year-end exchange 
Salisbury safety equipment rates. 

Cadbury-Schweppes. the a^ujsftiOT chipping in another Earnings per share rose by 32 
C - nf t5 ^" ery aBd “ ever ' £462.000. Existing activities per cent to 19.9p (16.1p> The 

Showed a more modest increase interim dividend is increased by 
of 18.7 per cent from the £19.7m IS per cent to 2 7p (2.345p 
mateiy uicaah and tak- total In the first half last adjusted for a one-for-one scrip 

ing on Bed Cheek a debts* y ear issue). 

These were pot at £17 3m at * ^ Barrie Stephens, chief exec- The interim figures exclude 
A£rtl 24 year-end, utive> yesterday played down about S2m of turnover and 
although Cadbury aald the giebeV exposure to* the US, £150.000 of profit from two UK 
level has now dropped to W h] C h accounted for less than 40 footwear companies subse- 


; six Ing cash at an annual rate of 
Two- £S0mto£40m. 
nted Turnover more than doubled 
il. to £483.8 (£229 -2m). Compara- 
and tlve figures were restated to 


| AWA | f„„ _■ j 01 CUC J CAUV3 U1C aw »aww*w— — !»■ — 

K”. 7yA.?y..C?, Pl ^, 3? which accounted for less than 40 footwear comp 
aoont &IOm. BiunMn- y ester- cent Q f turnover in the first quently sold to management, 

day said that the cash half Europe, including the UK, Minority interests rose to £1.88ra 

accounted for 38.S per cent (£207,000). With 

vDeet 8 deota anonid. n/;»v, DAK*T4*h-im unit Pinm narv it/* mu mmr 


companies 


leave the company with a 
“modest cash balance” by 
the next year-end. 

Red Cheek, an apple growers’ 
co-operat i ve, was bought by 


accounted for 38.5 per cent. (£207,000). With no extraordi- 

With Robertshaw and Ranco nary items, compared with the 
in the group, controls now previous 5l0i>ni charge from the 



Debbie 

Moore 

quits 

Pineapple 


BCal urges OFT not to refer 
SAS partial bid to Monopolies 


BY CLAY HARRIS 

British Caledonian Group has investors, 
urged the Office of Fair Trading BCal all 


’ Barrie St 
Playing down 


account for 61 per cent of pre- unsuccessfi 
tax profit. The addition of Bar- utable pn 
ber-Colman, another US controls (£789,000). 
company, for the last five 


unsuccessful bid for APV, attrib- 
utable profit rose to 527.3m of that question, and even after 


Sirr—.' VZL «* rea3_T\T. company, tor tne last rive 

months of the financial year will 0 comment 
August 1984, and was i:ft *ha nmnnrtinn to 60 ner cent. * CUmmWIl 


yesterday’s recovery stands on a j 
prospective p/e of only 72. on ! 


described at the time as “an 


lift the proportion to 60 per cent. 
Siebe has already eliminated 


SilOm pre-tax for the 


““ JT* Siebe has already eliminated Siebe is a share to remember, Harping about the dollar expo- 

jby y* P"* ° r * more than 1,000 of the 10,000 although many shareholders sure is shortsighted and smacks 


strategic plan”, rei nforcin g ^ Robertshaw and Ranco, must be ready by now to f< 


overseas earnings growth. 
Yesterday, however, the 
company said that competi- 
tion In the US market had 
been fierce and that it did 
not feel able to give Red 
Cheek the support required. 
During 1986/7, Red Cheek 
made a £900,000 pre-inter- 


and more cuts are on the 
CompAIr, the compre 


it. After two years of 


of knee-jerk analysis. It over- 
looks the advantages to be: 


division, increased pre-tax profit uni 
by 20 per cent to 59.13m, 20 per toe 
06111 ofgroup total, despite a 3 Sic' 

l -“®r per cent faU hi sales to £94.6ra. in the crash if it hadn’t slipped 

Garage equipment activities cen- so far already. What price a 


air full speed ahead in pursuit of an gained from import substitution 
>fit unwavering industrial vision, at and . cost-cutting in the US. 


unwavering industrial vision, at and cost-cutting in the US. 
the expense of a flood of paper. Shareholders, however, cannot 
Siebe would have fallen farther afford to take Barrie Stephens’ 


in the crash if it hadn't slipped 20- 


2 U-year 
will be 


view (which no doubt 
vindicated). They need a 


subsssf.sS' £ aas kk 


Garage equipment activities cen- so far already. What pnee a will be vindicated). They need a 
tred on Tecalemit accounted for share with heavy US exposure, long, quiet patch without a cash 
17 per cent of profit, and safety an overhang of shares stuck with call or large acquisition. Inves- 




shares stuck with call or large acquisition. Inves- 
rehictant underwriters, and man- tors not already in may wish to 
agement whose quirky self-confl- wait until they feel more confi- 
dence sometimes obscures its dent that selling Into strength 


ready In may wish to 
they feel more oonfl- 
sriling Into strength 


, - ijcdlUIX jiao ucai tcum.cu mj ’‘ q ** * ■ ■ J iuim* Mil j IVU w ( 

net assets at the year-end gg oent from 118 ^ ce nt ^ dence sometimes obscures its dent that selling Into stren 
c^dEn^to^hfehUS group March, 89 8 result of the strength? Siebe tested the depths has been exhausted. 

General Cinema recently ' 

Thorn EMI woos Australians 


ByPhSpCofiBOt 

MS DEBBIE Moon is leav- 
ing the Pineapple Group 
which she brought on to the 
Unlisted Securities Market, 
in a blase of publicity five 
reansgo. 

But she is taking with her 
the dance studios that made • 
her and the rights 

to the Pineapple name, 
which she uses through 
fashion shops and designer 
nms chsndlae 

A costly move Into New 
York proved unprofitable 
and the studio there will 
now be closed and the build- 
ing sold for about S3m 
(51.67m). 

Ms Moore Is to acquire 
the studios for u yet-to-be- 
determined sum and run' 
them as a private company. 
She will resign bom her 
post as chairman but has no 
current plans to sell her 
share* in. the company. 

The new chairman will be 
Mr Peter Bain, also the 
chief executive, who moved ! 
into Pineapple in 1985. 
Since Mr Bain arrived in 
1986, the group has made 
several acquisltons in the 
field of marketing services 
and recently announced tre- 
bled pre-tax profits of 
£US5m. 

Once a new name is 
found, the gro u p will move 
bom the USM to die main 
market. 

See Junior Markets on 
pagen 


Scandinavian Airlines ; 
the Monopolies and 
Commission. 


up has investors. other than takeover by BA. 

■rading BCal also told the OFT that It Air Europe’s parent company. 
Her by was willing to accept two of the International Leisure Group, has 
tem to terns which BA secretly submit- ' also told the OFT that SAS 
'ezgers ted to the Monopolies Commls- ' should be allowed to take a 
don during a recent three- m onth minority stake In BCal without a 


not to refer any partial offer by was willing to accept two of the 
Scandinavian Airlines System to term which BA secredy submit- 


BCal said that its shareholders inquiry which cleared BA to 
should be allowed to consider an mount a new bid. . 


SAS offer - which has not for- It agreed to withdraw its objeC- 


mally been made - at the same Hons to Civil Aviation Authority 


minority stake In BCal without a 
Monopolies reference. 

Mr Peter Smith, 1LG managing 
director, said last night there 
was no reason that UK airlines 


time as the full bid from British licences being Issued to Air should be protyected any more 
Airways, which is worth 5153m Europe, a rival UK independent, than UK newspapers, irt which 


in shares or £LI9m in cash. to operate competing services 

tj a im j « j ■*_ _ z . 1 . 


BA on Thursday released its between London's Gatwiek air- 
submission to the OFT which port and eight continental cities. 


strongly supported a reference BCal 
and denounced a SAS stake in object 
BCal as "back-door nationalise- other 


don.* SAS is a consortium con- other routes. 


arope, a rival UK independent, than UK newspapers, irt which 
i operate competing services the Government had allowed 
•tween London’s Gatwiek air- non-British companies to take 
at and eight continental cities, minority stakes and fuD owner- 
BCal also promised not to ship without the sera tiny of the 
sject to any application by Monopolies Committton. 
liter airlines to compete On ■‘It's not a bloody air force 
her routes. - we're talking about. Mr Smith 


trolled by the Swedish, Danish Although BCal stressed that it said. "It’s a small airline baaed at 
and Norwegian n«Hm«i airline, was not endorsing a rescue by Gatwiek. 1 don’t know what 
each half owned by their respec- SAS, the stance underlines Its what all the emotion Is about - 
tive governments and private clear preference for a solution See SAS results Page 10 


See SAS results Page 10 


Burnett & Hallamshire 
cuts losses to £1.8m 


BY HEATHER FARMBROUQH 


Barnett A the 

troubled coal-mining and prop- 


In February 1986, the group 
underwent a financial recon- 


Share issue 
delayed by 
NatWest 


erty group reported a reduced struction, the terms of which ! 
pre-tax loss of 51.8m (£3. Ira) for have been subsequently renege- 1 


By David LascaBaa, Banking 


the six months to September 30 ti nted , 

1987. Coal prices and demand 
remained low in the UK, reduc- 
ing profits at the three compa- • comment 
nies trading in the open market. . I , * 

Operating profit fell by lfi5 A fcp fall to 13%p in Burnetts 

per cent from sgflm to 522 m, share price was all the reaction 


per cent from £2.6m to S2in share price was all the reaction 
despite the continuing improve- the market could muster toyes- 


continuing businesses was down *" e company a 
7 per cent from S49.6m to revelation thtt Ira flnandal pori- 
546.4m. Charges from the elirai- rion was much worae than the 
nation of unprofitable activities balance sheet suggested and any 


Thorn EMI woos Australians 

vania »ntt said the Red 

Cheek business - which pro- BY BRUCE JACQUES M SYDNEY 

“ THE TREND for UK companies the Australian' company’s direc- showed net profits ahead 16.9 
opposed to lAdoury s dear w __ UD minorities in their tors vesterdav told shareholders per cent to »4.3ra on a 5.2 per 


Airtours static 


and Interest not relating to can- recovery was far off. If the latest 
tinning businesses amounted to announcement tadk«l fresh hor- 


51.3m (52£m). Losses per share rors » offered Bttle comfort 


variety - would be comple- 
mentary. 


i up minorities in their tors yesterday told shareholders P 0, to S4.3m on a 5.2 per 
ian offshoots is contin- not to act until they had Jjeirt rise in sales to < 104 .5m. 


„ ... , . uing with Thom EMI launching" reviewed the bid with the assis- This excluded a $5.4xn extraordi- 
8 *26- 1m bid for the outstanding tance of advisers, Lloyds Interna- ?ary profit on sale of a building 
n. 1 .. 25 per cent of Thom EMI (Aus- tionaL Morgan Grenfell Australia (*320,000 profit previously). 


lian interests bnt no 
disposal plans on this score. 


This comes only days Is acting for the parent company. An unchanged Interim divi-1 


after the BOC group made a The offer price is the same at dend of 7 cents a share Is 
its shares udw Jp to M7p tppnm nffpr for nntsta nrlfrio whifh thp Aintmiijin mmiuns declared and the halfwav result 


on news 
sale. 


S220ra offer for outstanding which the Australian company declared and the halfway result 
or tne neo oneek s ^ iares ^ Commonwealth Indus- was floated in 1984. It compares represents annualised earnings 


shares in Commonwealth Indus- was floated in 1984. It compares repraonui annu&iisea earnings 
trial Gases. with a last sale price of Sl.92 and P®" share of nearly 21 cents, pla- 

OfTering *250 a share, Thom- represents a premium of more cln 8 U*® British bid on a multiple 
EMI describes this as providing than 40 per cent on its latest Jl-9- 

shareholders with "an excellent' stated asset backing. The directors said the earnings 


Merrydown 
updespite fall 
in cider market 


Airtours, package holiday 
operator, reported almost 
static pre-tax profits of 
&L03m for the year to Sep- 
tember SO 1987 In line with 
the forecast made last 
month* the said IT 

pm tn profits to 
be about 52m. Turnover 
rose from 566.18m to 

Aa forecast, the dividend 
in 2.7p set, and stated earn- 
ings per share (weighted 


were l.lp (1.3p). 


Group borrowings were Pennsylvania. The irompany’s 
567.9m, compared with 5641m strategy continues to be to con- 
st March 31 1BB7. These included cen*rate on its coal businesses, 


QatecL THE 5100m Japanese share issue 

proposed by National Westmln- 
ster Bank, the UK’s largest 
• comment clearer, has been postponed 

A fcp fall to 13!fcp in Burnett’s because of last month’s market 
share price was all the reaction c* 88 * 1 - , . . _ 

the market could muster to yes- The Issue, announced in Sep- 

meht in minina nerfcumaxice in terday's announcement. There terabsr. to nave accompan- 

to te«i Bta, Cttyjj.tenain led the tohng oftoww 
mnBnuinii hnin^ Hmn the company since 1985’s sudden on Tokyo stock exchange, 

revelation that its posi- matching a similar move in New 

tlon was much worse than the York. 

balance shed suggested and any NatWest said last night that 
recovery was far^rtffthe latest the derision had been taken "in 
announcement lacked fresh hor- view of the significant changes 
rots, it offered little comfort which have taken place In the 
apart from the improvement in w orid markets since the 

Pennsylvania. The company's middle of October." However the 
strategy continues to be to con- situation will be kept under 
centrate on its coal businesses, review. 


apart from the improvement in i 


borrowings in California of y®* co ®l demand and prioes are J The issue was planned in order 
about 531m, which should be totittriy to rise. There is little J to broaden NatWest 'a interna- 


reduced by 521m on the sale of the Company can do to better ite tional shareholding 
the One Westwood property in gotoahance drastic ally u ntil its raise its profile in tn 
December. financial position improves. 


position improves. 


market. 


’s intema- 
base and 
e Japanese 


Anchor shares 
rise on talks 


The directors said the earnings 


to dispose of their Yesterday there were no trades improvement followed manage- 


average) were marginally 
ahead at 8J»p (8-53p). 

There was an extzaordi- 

nary credit thia time of 

it io n 51 Jf8m which represented chemicals company in whirii US 
JJZra net surplus on closure and industrial gases group. Air Prod- 
xiok sale of the company's retail ucts snapped up a 29.5 per cent 
travel division* stake on Monday - added a fur- 

ther 156p to 630p yesterday. 

This followed Thursday’s 

;h set to buy 

* » Kennedy Smale. Kennedy, How- 

^ ever, remains reticent about its 

OI US G II 111 TV future intentions, saying only 

that it is waiting to see toe Air 
OPBlTY CORRESPONDENT ~ Products offer document. 

The only comment from Air 
sive day it firmed after the group Products's advisors, Hambros, 


erous price, par- in the Australian shares but a ment chan g es and a corporate 


shares at a generous price, par- 
ticularly in fight of the collapse 
in stock market prices." 


yer was 

rhorn I 


It is still pitched well below announced its results for the half 
the pre-crash peak of *3 l 50 and year ended September 30, which 


reorganisation. The depreciation 
charge was heavy at *12J2m 
(* 11.4m) and interest took 
*61.000 (*88,000). 


By MkkJTaft 


Cambrian & General 
says no to wind-up 


Shares in Anchor Chemical - 
the Manchester-based speciality 
chemicals company in which US 


BYMHQTAfr 


In spite of a 2 per cent 
decline in the cider market. 


Merrydown Wine managed a 
557,000 Increase in pre-tax 


557.000 Increase in pre-tax 

. profits for the half year to 

September 30 on turnover ! 

_ Bp from 55.03m to 5&54m. 

Pre-Christmas sales have 
been building up well but 
the fina l outcome is depen- 
dent upon the sell out over 
Christmas and the restock- 
ing demand In the New 
Year. Given this, Mr Roy 
Hoope r, chairman, is confi- 
dent toe company can main-, 
tain Its steady progress. 

Merrydown Vintage Ciders 
continue to outperform the 
market and despite Increas- 
ing competition, to main- 
tain their leading position 
in the premium quality sec- 
tor. Progress tn market 
share has again been helped 
materially by maintaining 
substantial marketing 
investment. 

Trading profit for the period 
was 5689,678 (5648,783) 
and interest amounted to 

517.000 (533,086). Tax took 

5235.000 (5221,651) leaving 
attributable profits of 
5487,671 (5394,046) or earn- 
ings of 10. 4p (9A2p) 

The interim dividend is raised 
from 0.9 to lp per 2fip 
share. 


Leigh profits double 
after rationalisation 


Mountleigh set to buy 
back 10% of its equity 


BY FIONA THOMPSON 


Leigh Interests, the waste pared with 520.29m last year. _ . 

disposal group, yesterday Tax took 5660,000, against Pf°P, er ^y tra . dt “8 and 
reported that profits had more 5299,000. An interim dividend of Sroup, is to ask « 

than doubled for the six months ]B3p(1.4p) was declared. ers for authority to m 

to September 30, advancing to erommua* market up to 19Bm slu 

51.79m against 5855,000 last • Comment 10 per oent of Us issued 

year. Earnings per share rose by These results were slightly The move extends 


BY PAUL CHEE8EBIGHT,PROPERTY CORRESPONDENT 
Mountleigh, the aggressive day it firmed aftei 


Cambrian & General, the UK brian's Bermudian subsidiary - 
inve s tme n t trust previously run has begun legal action against 


by disgraced New York arbltra- Ivan F. Boesky & Company L.P. 
gear, Mr Ivan Boesky, is recom- and others with a view to recov- 
mending shareholders to vote ering its *20m investment. "This 


against a wind-up of toe com- action,” sa, 
pa ny next month. energetical 

- The annual- opportunity to - In the yr 


lion,” says the report, "will be 
lergetlcally pursued." 

In the year to end-September, 


wind up the trust, from 1987 Cambrian’s net asset value on 
onwards was introduced when the ordinary shares rose from 


Mr Boesky moved into the driv- 150.9p to 173Bp, while the cas- 
ing 9eat In 1982, and a meeting is tal shares' backing increased 


being held on Decem b er 22. "In from 237.8p to 282.7p By end- 
normal circumstances, the com- October the market crash, cou- 


pany could be put into members’ 
voluntary liquidation and an 


pled with the dollar's decline, 
had reduced those figures to 


irty trading and develop- announced its equity intentions, yesterday was that the position voluntary liquidation and an nad reduced those figures tc 
group. Is to ask sharehold- but then slid back again in a is still being reviewed. Initially, early distribution to shareholders 135p and 190p respectively 
ir authority to bay on the sluggish market. . the US company suggested it was Oould. be expected, ‘ says chair- There Is no _divmend. 


51.79m against £855, 


r. Earnings per share rose by 


. per cent to 5’6p (3. Ip). " ahead of City expectations and which has already become 
"The improvement comes from the shares moved ahead to close apparent among property com- 
.tionalising our core environ- 13p up at 177p. Waste disposal is paiuea Last month, Hammeraon 


ers for authority to bay on the sluggish market, 
market up to 19.6m shares, some Mountleigh shares were txad- 
10 per oent of Us issued equity. ing at a premium to their net' 
The move extends a trend asset value before the market 
which 


Mountleigh shares were trad-; looking to make a recommended 
ing at a premium to their net offer. 


man, Mr David Hobson, in a let- 
ter to shareholders. 


The US Securities and 
Exchange Commission, mean- 


rationalising 


I3p up 


disposal 


has already become crash but have since fallen to a 
: among property com- discount of about 40 per Cent 
*est month, Hammeraon Phillips and Drew, the group’s 


mental activities, eliminating a growth area: UK industrial out- took the decision to do the same broker estimate the net asset 
non-envlronmental activities, put is continually Increasing at thing Earlier this week Chase value at 240p a share. 


extending acquisitions an<i the same time as environmental Corporation declared Its in ten- The general object of buying 
increasing operational effi- concern grows. Alongside this, tym of seeking permission from in shares is to increase the asset 


Ciency," said Mr Bill Pybus, more local authorities are con- shareholders to buy its stock on value of the shares which still Shares in 


MK and RTZ hold 
inconclusive talks 

By David Water 


‘However, the circumstances while, continues to hold 12.68 
are Car from normal: the com- per cent of the ordinary shares 


pany has contingent liabilities in and 54.6 per cent of the capitaL 
respect of litigation and taxation 

it is not possible for the ■ — 

directors to determine how long . r 

the resolutions of these matters GENERAL ACCIDENT Fixe 


trading out their waste dhqw l I the market. British Land bought remain on the market The prac- 
' services. Leiafi is~readv to ao 1 back some of its own stock after tice hitherto has been normally 


chairman. trading, out their waste disposal 

Of the company's two divi- ' services. LeigK is~ ready to go 


sions, environmental services with the growth, aiming to buy 
contributed £2£m profit on sales smaller companies which will 


back some of its own stock after tice hitherto has been normally 
the stock market tumble started associated with investment cam- 1 


of £I75m, while 


may take, nor can they state at S? n Lif £ 

Shares in MK Electric Group, present that no further actions «>r Stuart Wyse Ogilvte 

subject to an unwelcome or claims may arise as a result of ~“ tes ’ th e largest group of 
£206.5m cash bid from RTZ, toe activities of Mr Boesky." agente In Scotland. The 

edged up another 4p yesterday The annual report from Cam- ** saasf jf (i 

as it emerged that toe two par- brian, which accompanies the “S sh ^ es 


__ _ ... edged up another 

profit'on sales smaller companies which wifi J on October 19. parties, whose share price is I 88 it . e ® e ^ d P 8 ^! Wan, wltich accompanies i the 

builders’ mer- allow it to increase revenues but I The Mountleigh share price driven by the asset value, rather I fi*® held inconclusive talks yes* letter, details toe various actions * l tHD *°an notes and cash. 


chants made £85,000 profit on not overheads. Its Interest l bas latterly been hovering than groups like Mountleigh 


charges are significantly down 8 f°“ 1 ) d com P 8 JS 1 
services on last year, and Pybus hopes to bigh for the year of 322p. 

treatment get the present 50 per cent gear- 

recovery ing down to. 40 per cent by year t t • ^ j p ; 


£3.25m turnover. charges are 

Environmental services on last year, 
includes the effluent treatment get the prese 
activities and the oil recovery ing down to. 
business. The waste disposal end. Assumir 
interests are divided almost Ilf- the full year 


with a which are rated on their eam- 
Yester- Inga. 


Assuming pre-tax profits for 
;ull year of just under 54m, 


ty- fifty between chemical waste that puts them on almost 18 
and ordinary dry industrial times, at a premium to the sector 


Turnover was £20.42m/cbm- but fair given growth prospects. 


United Spring and Ratcliffe 
make pre-merger progress 


terday morning. against the company but stresses OSSORY ESTATES has bought 

The shares, which had gained that the board "will take all prac- Newfield Industrial Estate 
sharply on Thursday after a tical steps to protect toe com- Stoke-on-Trent from Eporth! 
French electricals company pany’s interests.'’ In particular, it Corabond and Attwood Develop- 
accumulated a 2.6 per cent stake, points out. Farnsworth - Cam-* merits for S2A75m. 


United Spring & Steel Group, making a total of 2.4p (2p) to be 
steel stockholder and processor paid from earnings of 6.47p 
and maker of springs and spring (5.94p). They said that trading in 
pressing, and Ratcliffe Indus-, the current year had got off to a 


Dominion Inti profits fall to £ 3.2m 

I te^ ^manufacturer of precision 

Dominion International Basic eamin#i per share fell terday’s interim results spelled 
Group, property developer, nat- from 7.49p to 4B4pThe interim out the reasons why. The expo- 
- ml resources and financial ser- dividend ii maintained at sure of the newlyicquired US 


tries, manufacturer of precision good start and saw no reason 


■, U. terto reuta rpell&l | ^ T'ZZ’ "* 

Mr Jo 


ural resources and financial ser- dividend is maintained at 2Bp. 


closed at 589p - 39p above RTZ*s — ' — 

offer of 550p per share. 

At yesterday's meeting, held tn Mtes-SsSs 
the offices of MK's advisors 
Kirin wort Benson, the two sides EttUITIES 
discussed the operational bene- 
fits that RTZ claims will result 
from an agreed bid. Price was 
not talked about, and RTZ 
intends to Issue its offer docu- fins 
ment this weekend. &> 


Oil 


chairman of 


vices, showed a decline from The dire 
£4. 65m to £3. 17m in pre-tax gramme ol 
profits for the six months ended uing with 
September 30. _ from UK 


The group has been pursuing a _ 

policy of divestment and the fig- concerning the company's 
ures for the Previous year ing in Southwest 
include a profit of 51.92m from 

interests now disposed of. A strong second half j 

„ .. . _ mance can be expected f 

Contribution from Southwest number of core businesses. 
Resources group-in which 


homes 


from UK property disposals 
U? 8 date and talks are in prom 
“S' concerning the company's h< 
ear ing in Southwest 


figure. The absence of last 
contributions from asset < 


s j over of 541.67m 
i- j Ratcliffe was In 


ais left a £2m hole in the profits. I first time in seven years with a 


7 m wMin tion to the UK spring raanufao- 

rn turin * industry and sales cur- 

in the black for the M ntiv »» the, uru 


. ,, , And more fundamentally, 

A strong second half perfor- Dominion's metamorphosis from 
ance can be expected from a industrial holding company to 
unber of core businesses. financial services group Is takin g 


rentiv at the rate Of Private care homes amf two 

npr ^ I development properties In toe 


L a ud L ei sure is acquiring four 
ivate care homes ana two 


uth. ume ui seven years wun a- annum 1 k>f <,)»« «« c o«»ew|»nieai properties ui uie 

re-tax figure of 5216,000 Midlands throiteh its Park 

£52,000 losses) on turnover of t II 6 eariun S s of Homes division. Consideration is 


£52£00 losses) on cu 
5.08m (5962,000). 

The United directors 


Ra — 1 itvuiuo wvaoswAi. vnAUMiUUVU/ll m 

H, n_. il 9 F— 53.6m. in cash and 313^35 new 

He forecast that &atcliffe I LandLeisure ordinary «840p per 


Resources group-in which -S™ t?* _ The United directors proposed would make profits of not l ess 

Dominion holds a 69 per oent feU 8 51181 dividend of 1.8p(L5p) than Sim in thefiiU year. sh S£ 

interest-declined from §775,000 g-87m to S2^lmin the penod. ever wipected. Wito perhaps . ZL — 

to £282.000. with States Petro- There were extraordinary profits only *8™ in sight for the foil at 53- 

leum group contributing of 5330,000 representing the sale, year against £8.6m last time, the A l n l, aillni J A ovuotieinn pretwi 

£460,000 (61&.000). Last year Jj rh^re^aj^O^^ho^ A1 P hamenC eXpailSlOn 


to 5282,000, with States Petro- extraordinary profits omy aom u. « 

leum group contributing of 5330,000 representing the sale. 

5460 000 fSlOO 0001. Last year °* “e remaining 2 per cent hold- pnce/eamlngs r 
toero was a profit on dispel Of in ^Uliam Hunt shortly. &te7rty^eni 
North Sea interests of 5846,000. ^fore the stock market crash, optonate vfew 

Taking this into account earn- now have boti 


Breakdown of profits show frigs per 40p share-quoted on the 
that the contribution from flnan- USM- Owere 0.45p, against 1.49p. 
cial services was up from 52.61m 
to 54.16m but that from natural irnmmant 
resurces fell from 5775,000 to 

£282,000. Turnover for the Analysts have for some time 
period was 531.3m (539.24m) been downgrading their forecasts 


per 40p share-quoted on the likely unchanged dividend pro- 
Owere 0.45p, against 1.49p. duces a prospective yield of 


optimistic view, toe shares may Alphameric, computer key- The private company achieved 5491.000. 
now have bottomed out: the board, viewdata terminal and pre-tax profits of £235,000 onj — 


The homes have been valued 
at S3£m and the development 1 
properties at 51.6m. In the year ! 
to May 31 1987 the homes pro- ; 
dticed pre-tax profits of , 



nearly 10 per cent and any fur- 
ther weakening in the price 
would probably bring the ureda- 


would probably bring the preda- 
Anaiysts have for some time tors out. 


dealing systems manufacturer, is sales of S1.4m In 1986, tut has 

to add personal computer-com- grown so rapidly that Alpha- GIBBS and Dandy has sold Us 
patible modems to its product' meric expects a material contri- central Luton premises for 

range with the purchase of PC bution to its own results in the £l-2m. The sale is expected to 

Communications for an initial current financial year to M&ndi result in a small surplus- over 

Sim in shares. 31. ^^1 book value. . 


FIXED INTEREST STOCKS 


book value. 


c*.RiPiaw> 

(vShUjlWW 


and attributable profits were of Dominion International’s prof- 
52.7m (53.63m). • its for the current year, and yea- 


its for the current year, and yes- 


DIVIDENDS ANNOUNCED 


Nestor-BNA for market with £26.4m tag 






t£» mtatPf. 
X 2 . 9 SS 




BY PHBJP COGQAN 


i.-SJjncZtlUS 

MSt(x;COT.20C 


LneCa,. 30tB „ 

Ow. a,a Pf. 
p ref. _ 






Date 

Cortes - 

Total 

Total 


Current 

of 

ponding 

for 

last 


payment 

payment 

div 

year 

year 

Airtours Tin 

2.7 

Feb 26 

• 

2.7 

. 


nil 

- 

0.3 

- 

0.3 

Chamb. & Hill — ^ — bit 

2 

Dec 16 

1.4 

- 

4 

Dominion Inti ~~~-int 

2.5 

- 

2B 

- 

5.5 

Joseph (Leo) int 

281 

Jan 8 

231 

• 

13.33 

Leigh Interests ~~ont 

1.83 

Jan 16 

1.4 

- 

4.15 

Merrydown Wlne§ int 

I 

- 

0.9 

- 

5.33 

Siebe . int 

2.7 

Mar 31 

235" 

- 

7.63" 

United Spring fin 

16t 

• 

1.5 

2.4t 

.. 2 


A MANAGEMENT buyout has 

proved to be the right medicine 


for Nestor-BNA, the nursing eea. 


agency. Sold for 515m by Eagle Although BNA was founded in 'per cent 
Star in 1986 as part of the dis- the early fifties, its recent his- Nursin 


Star in 1986 as part of the dis- 
posal of Grovewood Securities, 
Nestor yesterday announced 
details of a stock market listing 
valuing the company at 526.4m. 

The buyout involved a wide 
range of staff, including 28 
nurses or doctors, and unusually,' 
private clients of Henderson 


a r cent of the equity will local authority in which the in Industry (31) and the Pruden- 

by directors and employ- agency is operating and nor- tiaL 

mally vary between 17 and 20 The flotation will raise about 
ugh BNA was founded in 'percent. 54.7m, of which 51.2m rep re- 


RIGHTS OFFERS 


cory dates from 1976 when 
Mike Rogers, the managing dh 


Mike Rogers, the managing direc- operati 
tor, joined the group. At that rest is 


vided between Nestor out debt 


time it had 24 branches but now, Medical Services, which operates Hambros Bank Is 


placing 
19.7 per i 


law 

Price 

V 

"wS— 

taw teat 
nu name 
W DMe 

1 

"1 

Stack 

CtataB 

Price 

P 

80 

45 ■ 
so 

2M 

m aom 

M 3001 

Hf 

Ml 2701 

*6 

205p« 

— H 

SecwtaorifinaDSB... , 

VlM 

% 

ten 


Dividends shown pence per share net except where otherwise stated. 


private 

Crasth 


hospitals, nursing homes, private in 1985, only to foil last year due 


the group 
'of 526.4 b 


4m. On the basis of the 


Equivalent after allowing for scrip issue. fOn capital Increased by rights firm which acted as adviser to 


waite, the stockbroking hospitals and industry, deriving to the costs of servicing the debt 1987 profits forecast of 52£m,| 


and/or acquisition issues. §USM stock. Unquoted Sack. Third market. the deal. After toe current fipat, 


income from commission. Rates incurred during the buyout, the prospective p/e at the plac- 
of commission are set by the which was backed by Investors ing price is 13^. 


HSbSSSbS3b^ i S»i3^S 




* 


t *.i* 

'V 




















■»4 L- ..... 

‘ - .1 . *> ■ 





1 % 



i- 


r * i mi 

x ' dl S 

' 7 . 


f > A; Cental 

'•i ' l :;:d-up 



Financial Tunes Saturday November 28 1987 


FT - ACTUARIES WORLD INDICES 


Jointly compiled by the Financial Times, Gokkian, Sachs & Co^ and Wood Mackenzie & Go. 
Ud^ hi conjunction with the Institute of Actuaries and the Faculty of Actuaries 


FT - ACTUARIES INDICES 


These loam are the joint compflation of the Financial Times, the Irstfafte of Actuaries and the Faculty of Actuaries 


EQUITY GROUPS 
& SUB-SECTIONS 1 


NATIONAL AMD 
REGIONAL MARKETS 

FHPW Hi parwOwes 
stow tranter of stocks 
per group too 


Australia (09). 


Beh*»MRl_. 

Canada (177) 

Denmark (3» 

France 030) .... 

Welt German (93) _. 


Ireland 

teriyiaai ,, 

Japan 14*7} ... 

Malawi* mi 

Mexico 041 

Nethertand (37) 

New Zealand 




Spain ra^n 

Sweden IMV 

Switzerland 153) ...... 

United iflmriom (332) 

USA (582) 

Europe (946) 

Pacific Batin (f>7R) 

Euro-Padflc 0624) 

. Enrope Ex. IIK (6141 

Pad Hr Ea. .bnan 1231). . 

World Ex. US 0826) 

World F«. UK (307M 

World Fa. So. Af. (3947) 

World Ex. Japan Q9SU 


The World Index (24081 . 


THURSDAY N0VEM8E* 26 1987 

WEDWEHMY MVEWRCR 25 2987 

raw t m HPEX 

US 

OrT* 

Pound 

Local 

Grots 

US 

Pomd 

Local 



Ynr 

Dotttf 

Change 

Sterling 

Cunenw 

Dtv. 

Date 

Staffing 

Cnrena 

1987 

1987 

*90 

Index 

% 

Index 

tadex 

Yield 

Mot 

Index 

Index 

High 

LOW 

(rapra*) 

9958 

+L0 

8227 

9531 

433 

9844 

8X47 

9448 

18041 

8540 

9X59 

92.45 

-06 

7638 

8046 

240 

9298 

76.79 

8055 

10287 

8553 

9446 

10237 

-03 

8458 

8836 

536 

1 i 

8442 

88.76 

13449 

9659 

95.42 

10649 

+U 

8741 

100.79 

347 

bf-ry-'l 

8640 

99.72 

14X78 

9855 

98.77 

11X57 

+Oj4 

9258 

9742 

343 

pwl 

9X77 

9757 

12443 

9858 

9555 

8656 

-06 

7135 

76.71 

358 

86.91 

7X79 

7753 

12X82 

7739 

9837 

75.99 

-L9 

62.78 

65.92 

249 

77.47 

63.99 

6756 

104.93 

68.91 

9734 

8458 

+0.4 

6948 

84.45 

540 

8424 

6957 

8421 

15858 

7542 

9251 

10X24 

-03 

8530 

9X38 

4.97 

10954 

8552 

9L56 

16022 

9620 

9243 

79.74 

+15 

6648 

. 7347 

2Jfl 

7856 

6449 

7X96 

11V.T1 

7244 

9650 

14136 

+03 

116.79 

12023 

058 

14049 


119.% 

16128 

100.00 

9032 

10234 

-0.9 

8455 

: 9841 

3.70 

10327 

iipt 4 ! 

9955 

19354 

9824 

9952 

13253 

-9.4 

10950 

30048 

140 

14624 



42259 

99.72 

9138 

9654 

-X0 

79-43 

8238 

5.46 

9752 

BD21 

8320 

13X41 

87.70 

9853 

79.72 

+15 

6546 

66.96 

4.74 

7856 

6448 

66.40 

138.99 

75.99 

9457 

10542 

-22 

8726 

9251 

297 

107.98 

8958 

93.94 

18541 

9643 

10353 

96.91 

-0.7 

8046 

9152 

243 

9755 

8057 

9158 

17428 

9059 

98.92 

136.89 

+24 

11349 

9246 

444 

13420 


90-98 

19849 

inn no 

9723 

12053 

+02 

9925 

14220 

442 

11948 


■ 1 ■ 

16841 

10040 

9232 

99.75 

-22 

82.41 

8941 

257 

10X96 


90.96 

13654 

8850 

9940 

82.47 

+12 

6854 

69.97 

237 

tn w 

6734 

6927 

ITEM 

7355 

96.42 

12X33 

-05 

10024 

10024 

45B 

12X40 

14027 

10027 

16287 

9955 

9346 

9950 

+04 

909 ft 

9950 

X7D 

9950 

8258 

9950 

137.42 

9283 

10347 

99.42 

-03 

8254 

84.75 

3.96 

99.71 

8236 

84.97 

13d 02 

9225 

9547 

13741 

+04 

11349 

117.98 

0.79 

13752 

11325 ~ 

11758 

158.77 

10040 

90.49 

12236 

+05 

10X10 

104.72 

X82 

12259 

100.92 

10453 

14355 

lMM 

9252 

99.86 

+05 

• 8250 

9959 

347 

99.79 

8242 

9953 

13755 

9320 

10284 

8543 

-05 

70.91 

7550 

X42 

8625 

7X24 

75.45 

11X97 

7849 

9753 

9224 

+0.7 

7621 

8857 

4.72 

9X61 

7557 

8747 

16443 

8357. 

9274 

12X97 

+02 

100.77 

10440 

X90 

ivi-74 

10055 

104.47 

14338 

10040 

9249 

112.49 

+05 

92.93 

10X21 

228 

11232 

9277 

10352 

13842 

10040 

9755 

11351 

+05 

93.45 

102.94 

249 

11298 

9332 

Ht»m. 

139.47 

10040 

9645 

9941 

+04 

82.46 

9442 

342 

9942 

8245 

9444 

13422 

9554 

99.99 

11326 

+05 

9357 

10249 

251 

11352 

9X43 

10281 

139.73 

10040 

9645 


Figures la pamtbnes dew 
number of stocks per section 


Basv ntaec Dk XI, 19B6 - 100 
Conritfn, The FkweH Times, Gotta*, 
US Maftet dosed for pvbflc hafltey 
Law* prion were naara&wh hr lUi 


taste & Co, Wood KkMmIc * Co. LuU.987 
26. 


Economic Diary 


TOMORROW: General election 
in Turkey. National referendum 
in Poland on economic reform 
and political changes. 

MONDAY: EC internal market 
council meets in Brussels. Lon- 
don sterling certificates of 
deposit (October)- Bill turnover 
statistics (October). UK banks’ 
assets and liabilities and the 
money stock (October). Centre 
for Economic Policy Research 
holds conference The case for 
LDC debt retief* at 10 St James's 
Square, London SWl. Eurotunnel 
share offer allocations. LC.J 
third quarter figures. US revised 
" ' and costs 
economic 

Ababa (unto 

December 1). Sir David Wilson , 
Hong Kong governor, visits Can- 
ton, Shanghai and Peking (until 
December 5). 

TUESDAY: Financial Times 
Conferences hold "World Tele- 
communications “ conference at 
Hotel InterContinental, London 
Wl. Institute of Directors annual 
dinner. NATO defence planning 


committee meets in Brussels 

a inta December 2). World Travel 
arket opens at Olympia. US 
Senate Finance Committee hear- 
ings start in Washington. Trafal- 
gar Bouse annual results. GEC 
and AlUed-Lyons publish interim 
figures. 

WEDNESDAY: UK official 
reserves (November).. Capital 
issues and redemptions (Novem- 
ber). Overseas travel and tourism 
(September). Advance energy 
statistics (October). Kin& Cross 
fire enquiry opens. Saatchi and 
Saatchi annual results. Argyll 
Group half-year results. US con- 
struction spending figures (Octo- 

T'hTJRSDAY: 1087 New earn- 
ings survey, report Fart E; Anal- 
ysis by region. Housing starts 
and completions (October).. 
House renovations (third quar- 
ter). Detailed analysis of 
ment, unemployment, 
prices and other indicators. 

FRIDAY: European summit In 
Copenhagen (until December 5). 
US unemployment figures 
(November). 


( VOLUMES IN MAJOB STOCKS ) 

Tto Mowing Is based on indlng nbrn far Alpha securities dealt throw* the SEAQ 
system yesterday mill 5 pm. 


CAPITAL BOOK (213) 
Bunding Materials GW, 
CteUctfnt CaetimdM B3_J 
Electricals CL4J 
Electronics 03) 


Mcctatecd EraararhgWR— J 
Hmh ate Meal FbnriteCnJ 
04) 


OtorktediU IbterUsOtiJ 
CSMSHeJtGMUP(ll3}_ 

Biewn Md Dum« < 2 U J 
Food Mnmfertnrleg C23)^j 
Food Ratal dog (17) 
fete ad tatted Pntecfe OK J 
LefanreQO) 


PadoBteo&PamrOU-J 
PaMfcfcing 4 Printiag 05) 

Stores 05) 

Textiles 06). 


OTHER GROUPS (87)_j 
Agenda (17) 

Chemicals (ZD. 


Co n gtomei am (13) 
Supping and Transport dll J 
Telephone Networks (2) 
Miscellaneous (23) 


teonsrmL erase i<tn_J 


OH & Css (17). 


588 SHARE MOB (MB) .J 


FOUMUL SHOP 02U J 

Banks (6) 

Insurance (Life) (8) 


(Composite) (7) 
Insurance (Brokers) (8). 
Merchant Banks (ID--. 
Property (49) 


Other Financial (30). 


Investment Trusts (87) _| 

Mining Finance (2) 

Overseas Traders CUD 


ALL-SHARE INDEX (120) J 


FT-SE HO SHARE 


♦J 


Friday November 27 1987 


No. 


HUS 
1 15244 

122839 
189L85 
145247 
33144 
31547 1 
238U 
116X28 
97123 


1 776.41 
19*7.54 
173822 
109754 


MLM 

54246 

796.99' 

94340' 

Iwuil 

109350 

111354 

I mio 

1099.91 


158854 


91559 


60829 

BU 

0899 

475.95 

78550 

32SJ0 

I9L33 

36631 


78879 

41131 

17151 


Index 

Mo. 


law v 


aww 

% 


-05 

-LI 

-05 

+W 

-81 

—2.7 

-03 

-89 

-86 

+05 

-87 

-15 

+87 

-89 

-1.4 

-89 

-81 

-15 

-83 


+85 

-86 


-84 


-15 


-85 


-81 

+82 

+87 

-81 

+81 

+03 

-13 


-81 

+05 

-1.9 


-84 


IAS's 


-81 


p3 

(ItaxJI 


1862 

1152 

18S 

953 

1895 

1132 

1821 

1X63 

895 

876 

1890 

9.73 

753 

655 

753 

959 

898 

832 

12.06 

1152 

849 

1828 

864 

1822 

12.98 

13.98 


889 


1845 


898 


2137 


1434 

174 

885 


13.05 

1846 


Jfift. 


16589 


Gcob 

DM, 


YWd%l Ratio 


(Re: at 

1 07%) I 


431 

439 

455 
4.91 
358 
891 
828 

456 
847 
358 
3.99 
811 
354 
258 
839 
3.94 
455 
176 
434 
855 
243 
452 
832 
895 
557 
434 


807 


819 


120 

657 

550 

179 

730 

837 

352 

433 


121 

815 

161 


847 




E8 

PIE 


(Net) 


1153 

1U1 

1359 

1151 

12.96 

1132 

13.93 

922 

1358 

1851 

1137 

1126 

1753 

1750 

1196 

1840 

1811 

1450 

855 

1159 

2822 


1157 

1253 

3832 

851 


12.73 


1238 


639 


955 


2234 

1255 


1819 

1150 


No* 

26 


UMT 


hS? 1 

to *te 


1871 

2357 

3454 

6872 

3652 

11.92 

1139 

736 

3740 

2347 


66714 
1 16157 
0220.94 

fmni 

39629: 

1238.98 

0171.45 

1919211 


2249 

4877 

3357 

2945 


9734 

2818 

1546 

21.23 

16.91 

3331 


2243 

56.73 

1898 

3350 


2259 


2654 


2137 

2898 

3236 

pp 

3953 

877 

1892 

1196 


1724 

12.77 

3750 


2449 


16641 


TW 

Nh 

26 


I tees 
Ha. 


|mj2! 

1^.79 

|nu4 
316831 
1 116.97 


79739 

95336 

197202 

lituc 


| >9859 
110667 


85636 


6874060519 


91954 


(059 

6»29| 

87824 

47654| 

78455 

32821| 

982.70, 

366321 


BS747 


83464 


Nh 

24 


16891 


Wte 

to* 

25 


tadex 

No. 


66717 
1 86732 

|32L72 
392.94 
129854 
014238 
197751 
919.40 1 
1 77932 
198010 1 
173057 1 
iS85XS2| 
1 455.98 1 
615118 
f 83856 
55734 
80455 
953.71 
97AM 


67207 

187432 

■SK 

MQL71 

124039 

0174.47 

199138 

924.94 

78637 


166635 


B11X39 


8S7.74 


059678 


92031 


<21.92 


<75411 

78236 

32813 

903.911 

36940 


785.71 

40278 

88679 


83435 


16571 


Tk 

Nh 

24 


lodes 

Mo. 


[78419 

105615 


piffl.n 

182894 

58833 

esses 

96946 
1 99291 
0098611 
066336 


015136 


87043 


0617311139536 


93335 


613.73 


<7877 

79431 

32839 

88864 

37138 


78731 

41864 

88878 


Nov 

20 


16334 


Tor 
*90 , 
(approx)! 


Mex 

No. 


68548 

185820 

|«M 
3SL24 
127824 
U995L 
1937.98 
97820 
1 73127 
PK39.64 
052423 
197419 
148338 
E66732 
1 84135 
545.97 


80 

088872 

Ps 

79237 

hisese 


89241 


68738 
65732 
85613 
145838 
§19423 
135669 1 
81332 
366361 


84896 

33032 


76LZ7 


■3534 


Year 


16387 


Highs and Lows Index 


1907 

Mgk | Low 


183837 

198138 

195L58 

273345 

223879 

54657 

59867 

4U42 

173880 

140832 

126935 

109231 

2649.% 

269945 

158679 

73948 

507866 

116058 

91652 

1192.48 

179557 

154546 

154731 

249735 

127614 

1773.78 


un 
WT 
16/7 
20/7 
17/7 
14/10 
9 no 
13/10 
2 2/9 
U/7 
16/7 
26/7 
16/7 
U/7 
1300 
U/7 
500 
29/7 
2/10 
8/10 
17/7 
5/10 

8 no 

16/7 
9ft 
5 00 


126886 16/7 


245868 16/7 


136938 16/7 


•9867 


1285.72 

70758 

139956 

54759 

137436 

60348 


13/10 
16/7 
9 08 
1300 
17/7 
12/10 
un 

16/7 


122441 

727.93 

136612 


z no 

3/8 

13/10 


123857 UP 


24434 WT 


0807 
80537 
1115.39 
U6L76 
139152 
29826 
34864 
22331 
1653-78 
919.77 
17757 
72865 
184805 
159032 
94337 
427-56 
271349 
79820 
519.92 
799 JO 
87639 
92041 
97539 


02130 

103940 


10/11 
mi 
10/11 
10/11 
2001 
10/U 
901 
9/11 
1301 
901 
901 
901 
10/11 
1001 
9 nx 
10/11 
20 
901 

mi 

10/11 

1801 

10/11 

1801 

9/11 

901 

1001 


88637 18/11 


150549 


06745 UOl 


56533 
57739 
tan w 

6121 

789.92 

31239 


34L44 


UOl 

401 

401 

901 

4m 

UOl 

50 

UOl 


■72635 

33891 

71836 


iom 

UOl 

2 a 


78681 UOl 


15653 901 


Saxe 

f *— umim 

High Low 


103837 

138138 

195150 

273345 

223870 

54457 

59867 

41142 

173888 

140832 

126935 

109235 

2649.% 

269935 

150679 

73948 

507846 

116058 

91452 

119248 

179557 

154546 

154731 

249735 

127434 

1773.70 


un an 

16/7/87 
16/7/87 
20/7/87 
17/7/87 
140007 
9 00/87 
11/WB7 
22ft ft? 
16/7/87 
16/7 187 
16/7/87 
16/7/87 
un xr 

13/UMET 

un xr 
5 00/17 
29/7 ft? 

2 now 

8 00/87 

17/7 m 

5 00/87 
8 08/87 
un «7 
9/6/87 
5 00/87 


126686 16/7 «7 


26848 16/7 ft7 


136938 Un XT 


89867 

89838 

1285.72 

70758 

139956 

54759 

137686 

60348 


1303/87 
16/7 XT 
9 00/87 
1300/87 
17/7 «7 
1200/87 
16/7 XT 

un m 


122641 2 00/87 
727.93 3 /8 /87 
136632 13/10/87 


123857 16 n XT 


50.71 1302/74 
4427 11/12/74 
7148 2 02/74 
8671 25/6 ftZ 
122931 8 00/85 
45435ft ns 
49456 a ns 

1941 6 a ns 

2775515a m. 
6141 1302/74 
6947 1302/74 
5947 1102/74 
56251102/74 
17538 28/5 IDO 
5683 9/1/75 
434660/75 
510860/75 
5243 6/1/75 
62461102/74 
584360 05 
87639 1001/87 
7130 10204 
97119 1001/87 
9030 29A M2 
517.92 3001/84 
6059 6/7/75 


5941 1302/74 


8733 29/5 H2 


63.49 1302/74 


5538 1302/74 
6244 1202/74 
4688 2/1 /75 
43.96 13/12/74 
6536 1602/74 

SLZi 70 ns 

5631 20/4 US 
3339 1702/74 


7X1213/32/74 
6651 30ft /74 
9757 6 0/73 


6L92 130204 


24434 160/871 986.9 23/7 /84 


FIXED INTEREST 




PRICE 

MORES 

Fri 

Nov 

27 

ctege 

Thu 

Nov 

26 

xdadQl 

today 

xdadL 
1987 
to date 

1 

BHMdiGteWtet 



1MV. 

+857 

uui 


1049 

2 

5-15 yean 

14218 

+829 

14X77 

_ 

1254 

3 

Over 15 yean 

15047 

+839 

14949 

- 

1241 

4 

Irredeenabtac 

16646 

+037 

16545 

- 

1335 

5 

All stocks 

13856 

+027 

13858 

- 

1158 

6 


1MU 

+BJU 

1MU 


sit 

7 

Over 5 yean 

11654 

+842 

11642 

_ . 

249 

8 

AU stocks 

116.92 

+042 

116.90 

- 

242 

9 

Mtenllm. 

11941 

+041 

11940 

- 

1846 

10 

Prahnw 

8532 

-853 

8544 

- 

642 


JWERABE CROSS 
REDEMPTION YIELDS 


IB 



1 station rate 5% 5fts_ 

Inflation nle 5% 0*er5jn~ 

IdtaHan rate 10% 5jn_ 

IdUthw ate 10% 0ver5jn- 


DtteA 


5 

IS yean — I 
25ywrsZJ 


Frf 

No* 

27 


8.48 

938 

938 

939 
959 
951 
956 
953 
953 
8.91 


2.72 

3.98 

331 

3.96 


1845 

1042 

1842 


1043 


Tho 

Nov 

26 


852 

932 

952 

955 
943 
954 
930 

956 
956 
8.97 


2.70 

3.90 

2.98 

3.95 


1046 

1ft A3 

1042 


1042 


Yeat 

ago 

(appraO 


938 

1856 

1057 

1139 

10.92 

1055 

3137 

3X50 

1041 

1039 


349 

351 

99X 

345 


1X83 

1X77 

3X71 


1X83 


1987 


High 


9.92 

1037 

10.08 

1SJ8 

1051 

1034 

1044 

1047 

1051 

1050 


1900 

1900 

2 a 

2 O 

1900 

19/10 

2 O 

1900 

19/10 

1900 


449 19/10 
463 1900 
454 19/10 
445 1900 


1X86 20/10 
1X67 2000 
1X49 2000 


1X83 20 


Low 


752 11/5 
853 8/5 
855 8 IS 
859 B IS 

8.74 8 fS 

8.75 8 IS 
858 8 IS 
846 8 « 
8.72 8 IS 
841 9 Ol 


243 

350 

845 

357 


28/5 
6 /4 
24/3 
27/3 


946 

9.79 

944 


12/6 

23/3 

23/3 


1845 22/6 


40peotag laden 165X7; 10 am 16565; 11 am 16562; Noon 16565; 1 pm 16S3.9J 2 pm 16553; 3 pm 16505; 350 pm 16534; 4 pm 16534 




CONSTITUENT CHANGES; TR PAeffle Baste (71) has bee* deleted ate 


Ctes-SoiS 
Coofcson _J 
CmnwdiM 

Dee Cana _J 

WaoK Scrap MR 
EagfehCltaCtaws- 


Contfooantes- 


3102/86 U14.07 

3102/86 1114.07 

Telephone Networks 30/11/84 517.92 

Electronics 3002/83 164645 

Other ladnlrial Materials 3102/80 287.41 

HeatoWfamlNM ProdKte— — - 3002/77 26X77 

Other Grafts 3102/74 6X75 


Overseas traders . 
Madnnical Engineering 

Industrial £roap. 

Other RnandaL. 


Food Manufactanteg. 

Food Retailing 

Insvance Broken — 


3102/74 

31/12/71 

3102/70 

3102/70 

2902/67 

2902/67 

29/12/67 


by Tyndafi Hokflags (701 NAME CHANGES: APV Baker is now APV. 
late BasewdSe Equri* snctii 

Iflning Finance _ 


10840 

15344 

12820 

12846 

11413 

11413 

9647 


Another.. 

Brttldi Sov er n rae o t . 

Do. Index-fluked- 
Pets 6 Loans 


FT-SE 100 Index. 


29/12/67 

10/4/62 

3102/75 

30/4/82 

3102/77 

31/12/77 

3002/83 


10040 

10040 

10040 

10040 

10040 

76.72 

100040 


f FIS yield. A tat of ootetlteetes Is atobUe from the Prtfcfaen, The Ftaandal Times, Bmeteft House, Cannon Street, Lnodan EC4P 4BY, price 15p, fay post 32p 



The best of both worlds 

Some would say that to be immersed in the 
City you have to be immured in the Square Mite. 
Others will know better. 

Every day professionals up and down the 
country are dealing in the financial markets without 
having to set foot in London 

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The problem is, keeping pace with the markets 
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Fbr further infbrmaSon, can Camilla Sugden on GL324 7979, or complete this conxmandpostata 
Camilla Sugden, Raiders limited, 85 Fleet Sheet London EC4P 4A1 


Name (Mr/Mrs/Ms). 
Company — 


Postcode. 


.Telephone: 



FT 210 1/87 



Gross rents and other income 195.4 
Profit before taxation 
Taxation 

Profit attributable to 
ordinary shareholders 
Earnings per ordinaiy share 
Net dividends per share 
Net assets per share diluted 


1987 ! 

£•» 

1986 

£*m 

% 

Increase 

195.4r 

1623 

20.4 

80.2 

58.4 

373 

25.8 

19.1 


53.5 

39.2 

363 

19.2p 

163p 

17.8 

13. Op 

ll^p 

13.0 

533p 

440p 

21J 


□ The Group’s property portfolio £2,440iru 

□ Shareholders’ funds £l,700m, up by £600rtu 

□ £900m development programme, fully financed. 

□ Recent acquisitions show significant 
contribution to profits and prospects. 


n 


Ux The Secretary 

MEPCpfc, 

Brook House, 

113 Paris Lane, 

London W1Y4AY. 

(Vase send me a copy of 

the 1987 Annual T 
which wiD be av 
from 14d» December. 

1987 




Name. 


Address. 


L. 


■ Postcode. 


"J 








Financial Times Saturday November 28 1987 


INTERNATIONAL COMPANIES & FINANCE 



Boost for 
Hong Kong 
property 
market 

ByKMHnhlnHoagKang 

mb LI KA8EIN6 and Mr 
Gordon Wn, two of Bong 
Kong's most prominent bus- 
tneumui, uve alnlfl* 
cmntly bolstered confidence 
in the local p rop er ty market 
I l»y paying HKf 470m 
f WSIJa' 1 " 


industrial site at a govern* 
meat land auction. 

The price was between. S 
and 20 per cent higher then 
most analysts bad antici- 
pated In the wake of the 
stock market collapse just 
afx weeks ago. Mr Dominic 
Lena a partner of Richard 
Kills, the property consul- 
tant^ said: “I think It la 
indicative of the fact that 
demand la still there, 
although the market has 
suffered hiccups in tike past 
few weeks." 

Mr Li's Cheung Kong 
Holdings and Mr Wn's 
Hopewell Holdings are to 
develop a trade mart on the 
22,000 square metre site, in 
the t er ri to ry's Kowloon Bay 
area, through a Joint vea- 


Higher costs hold bade 
SAS earnings growth 


BY SARA WEBB M STOCKHOLM 

SCANDINAVIAN Airlines Sys* 1 
tem (SAS), which is considering ' 
making* partial offer for British i 
Caledonian Group, tun Increased j 
profits by 10 per cent, before < 
allocations and taxes, to 

SKrL66bn (*2Tfl.6n0for the year i 
ended September, 1987. i 

The results, which were ' 
boosted by gains of SKrSISm ; 
from the sale of three Airbus 1 
’planes to Constr of Denmark and 
other assets, were described as ] 
"disappointing" by analysts. * 

SAS has been hit by large . 
increases in operating costs and 
witnessed a slowdown in the j 
growth of passenger traffic dur- 
ing the second hair of the year, ] 
Furthermore, growth in pas- i 
senger traffic Is expected to stag- ] 
nate in future, partly as e result ] 
.of the recent stock market crash, i 
"It is very difficult to say what i 
win happen next year because of ] 


the stock market situation, hot 
we expect some sort of ststfu* 
tlon and slowdown in traffic 
growth" said Mr Lara BergvaD, 

chief operating officer. ___ __ 

Revenue for the groups widen 
inriprias the airline, how, cater- 
ing and package holiday 
operations, rose by 11 per cent to 
SXr23.87bn, compared with 
SEr21£8Sbn in 1985/86. 

For the airline operations, 
profits, before extraordinary 
items, rose 11 per cent to 
SKrL4Sbn while revenue rose 6 
per cent to SKrl7.51bn. Gross 
profit margin slipped from 1IJS 
to 11.1 per cent. 

Though the airline has seen 
lower fuel costs this year, its 
other operating costa have 
Inreased by 11 per cent due to 
higher airport and route charges, 
wage Increases and orgarusa.- 
tm^mi costs, which SAS et a tins it 
has been unable to compensate 


for because It has not been 
allowed to increase its feres on 
certain routes. . 

Costs from the Amadeus reser- 
vation and distribution system 
which it plans to have naming 
by mid-l9SS have also been 
added to the airline coats. 

SAS said that passenger traffic 
had risen by 4 per cent and that 
in Europe the Increase had been 
7 per cent. However, there has 
been considerable slowdown in 
the growth during the second 
half. 

Taking other business areas, 
SAS reported a 46 per cent 
increase in profits, before 
extraordingazy items, to SKrl80ra 
far SAS Service Parmer Jits cater- 
ing operations, while revenue 
rose by 19 per cent to 5Kx3.22bn. 

Both hotel business and pack- 
age holiday operations showed 
increased profits. 


Determined to join the big five 


and corporate philosophies of (SSLShn). It has acquired control played by other key figures in to his expanded empire. 


Anglo American hit by 
coal mining result 


BY 4M JONES M JOHANNESBURG 


ANGLO AMERICAN, South Afri- 
ca's largest mining; financial and 
industrial group, suffered a pre- 
tax mofit drop in the six months 
to September largely because of 
a poorer performance by its coal 


Hie interim pre-tax profit fell 
to R672ra ($290m) from R678m 
despite the fact that dividend 
income, largely from gold and 
diamond investments, increased. 

Mr Gavin Belly, the chairman, 
e xp ected second half results to 
show a rimiii- trend to the first 
half, despite the effect of the 
blade mtivpm* wrtin- in August an 
gold mining dividends, due to be 
announced at the win of calen- 
dar 1987. Amcoal, the coal sub- 
sidiary, continued to be affected 
by declining exports as sanctums 
took their tolL 

Mr Relly warned that the stock 
market had cut the net 

asset value of ordinary shares. 
Net asset value was R127.27 a 
share an September 30, but was 


a third lower at R85.49 on 
November 19. 

* • Rembrandt, the tobacco, 
liquor and financial group, lifted 
pre-tax p ro fi t s to R268.1m in its 
six months to September from 
R215frn as the group's 25 per 
cent interest in Volksxaa, South 
Africa’s fourth largest bank, was 
accounted as an associate for the 
first time. 

In the period Rembrandt 
acquired an indirect, effective 10 
per cent interest in Gold Fields 
of South Africa (GFSAl from 
London-headquartered Consoli- 
dated Gold Fields, as well as 
gaining rights to other GFSA 
shares owned by Gold Fields. 
The transaction was believed to 
have been designed in part to 
protect GFSA from Anglo Ameri- 
can. 

Net earnings increased to 6Q2 
cents a share from 41.4 cents and 
the interim dividend has been 
raised to 6.9 cents from 63 cents. 


[ Japanese trust banks at 
record six-month high 

BY IAN RODGER IN TOKYO 

COMBINED pre-tax profits of Tokkin special money trusts 
Japan’s seven trust banks widely used by industrial compa- 


The trust business was buoy- P*™** . 
ant (luring the period, as aggres- The balance oTpensum trusts 
sive financial investment by rose 16 per cent. The trust banks' 
industrial r^mpowiiMi and other total funds, made up of deposits, 
institutions, the so-called Zai- loan trusts, money trusts and 
tech boom, continued at a high pension trusts, stood at 
leveL Far «nn»mnU» the balanoe YlOLflKRm at the end of Sep- 
of money trusts. Including the tember, up 28 per emit. 


Three other sites which 
came under the hammer 
yesterday also obtained 
good prices, ndshutan addi- 
tional HKliSSm. Mr Leang 
said prices overall wan S to 
8 per cent more than bo 
exp ected. Mr Li was also 
actively bidding for n 
19,000 sqtre metre residen- 
tial site, which waa eventu- 
ally acq ui red by the Haag 
Li ng development group 
fbrHKtSO&m, 

Encor looks 
further afield 
for counter bids 

Bv Robert OMmna hi Monli^ 

wwp asaaspi^in sou sewiMiwmi 

ENCOR ENERGY Corpora- 
tion la looking farther 
afield for potential offers 
to counter the CSBSOre 
(8753.8m) bid for all its 
stock from TrnnaCanadn 
Pipeline*. It has provided 
confidential material to 
"certain companies” which 
it would not Meatifrr. 

TGPL has bought a far- 
ther L4m Encor shares to 
increase Its from 8 


THE COURTSHIP of British Cal- 
edonian Group by Scandinavian 
Airlines Systems reflects the lat- 
ter’s determination to be "one of 
five in ’95.- 

AI though SAS accepts the con- 
tention of British Airways - its 
bitter rival for the hand of BCal - 
that the age of the mega-carrier 
has < * rTTm * to international avia- 
tion, the Scandinavian airline 
does not look only across the 
Atlantic for examples of the 

i i 

u TC Wl. 

SAS'b willingness to contem- 
plate taking a large minority 
stake in BCal and Inject SfiOm 
(589.5m) in cash into the ailing 
OK airline reflects the fear that 
it is destined to become only a 
Nordic feeder for emerging Euro- 
pean mega-carriers - such as BA, 
Air France and Lufthansa - 
uniw ft forges an alliapcB of 
medium-sized aiiUnea: 

. By the middle of the next 
decide, SAS expects the ranks of 
European long-haul carriers to 
be reduced to five. With a home 
market of only 17m people In 
Denmark, Sweden and Norway - 
on the fringe of the continent - 
SAS has had to look far potential 
partners in similar situations. 

In addition to BCal, European 


BY CLAY HARRIS 

candidates include Belgium's 
Sabena, Austrian Airlines and 
Fhuiair. Further afield, SAS has 
agreed, or is considering, links 
with Thai International, Brazil's 
Varig and one or more North 

SAS argues that the age of 
the mega-carrier has come 
to the international avia- 
tion business. It hopes to 
avoid becoming simply a 
Nordic feeder for Mg Etfro- 
pean alriinea. 

American drHn« which it will 
not name. 

Under the SAS plan, the air- 
lines would create an integrated 
traffic system, but retain their 
individual identities. They would 
co-ordinate route networks, air- 
craft fleets; and "product line" - 
so that business travellers espe- 
cially would not notice any dif- 
ference in style and level of ser- 
vice as they changed flights. 

This strategy echoes the 
shake-up at SAS itself since Mr 
Jan Carbon took over as presi- 
dent 8nd chief executive in 1981. 

Convinced that business trav- 
ellers - the high-fore payers at 
the centre of its phut - place con- 
venience over loyalty to national 


flag carriers, SAS aims to pro- 
vide frequent flights in coopera- 
tion with partners where it can- 
not justify operating the services 
by itself. 

The new twice-daily flights 
each way between Copenhagen- 
and Bangkok, for example, plug 
into the respective feeder net- 
works of BAS and Thai Interna- 
tional. The same arrangement Is 
envisaged on services to Rio with 
Varig. 

London’s Gat wick airport 
would become a second Euro- 
pean hub, with SAS feeding pas- 
sengers Into BCal's interconti- 
nental network. SAS's would 
gain considerable advantage 
tram its dominance of the key 
Copcnhngen-Gatwlck link. 

Although it has had sporadic 
merger discussions with Sabena, 
SAS says It would prefer to 
achieve its goal without taking 
-equity investments in other air- 
lines. 

In the ease of BCal, however, 
SAB is convinced that it is now 
the only barrier to BA’s achiev- 
ing its target (rf removing BCal 
as a UK competitor on long-haul 
routes. SAS agrees with BA that 
BCal is unlikely to survive long 
in its present condition. 


Builder buys into Central 




JAPANESE TRUST BANKS 




Operatiog profit 

Pre-tax profit 

Net profit 



Yin 

% 

Yba 

% 

Ybn 

% 

Sumitomo 

76.5 

' +37.4 

773 

+193 

• 30 3.- •• 

+222.- 

Mitsubishi 

73.4 

+36 J. 

76.0 

+263 

313 

+26j6 

Mitsui 

68.7 

+55.7 

52.9 

+11.7 

25.0 

+30j4 

Yasuda 

53.4 

+743 

493 

+36.9 

20 J. 

+433 

Toyo 

pp 

+81.7 

42.4 

+3Sj6 

1R3 

+39.4 

Chao 

223 

+18.0 

193 

+19.7 

63 

+30.9 

Nippon* 

6J> 

+83 JO 

S4 

+123 

23 

+673 

Neau canpaw wNU, frril j w to 8 tpembtr 1 



company is confident ItwfH 
su c ce ed In winning at least 
50.1 per cent of Encor, « 
profitable oQ and gas pro- - 
ducer formerly known ss. 
Dome Canada. 

TGPL triad to hold up 
Encor’a plan to boy back 4J8 
per eeait of its shares in an 
applica t ion to the Ontario 
Securities Commission, hut 
.Encor was allowed to go 
.ahead yesterday. 


WORLD COMMODITIES PRICES 


BY DAVD WHITE IN MADRID 

SPECULATION surrounding 
Spanish bank shares has 
increased Anther as a result of 
the announcement that a private 
construction group is to trice ‘ 
control of the lugest sharehoid- - 
izig packet in, Bento CentraLthe ’ 
country’s top commercial bank. 

The move, made in a g re em ent 
with the Kuwait Investment 
Office (KIO), gives the Canatruo- 
donesy Contmas group control 
over KIO '8 holding of jnat under 
5 per emit, phis a further pack- 
age of more than 5 per cent, 


which it has agreed to buy born 
other shareholders, mainly for- 
eign institutions. In addition it is 
e xpected to exerci se "represents 
five rights" over the 2 per cent 
bekf-b? the JQO-cantxoJied cam-. 

pany-Torr^s Hostench 

This effective 12 per cent stake 
compares with about 20 per cent 
in the hands of board members 
and top management of the 
Banco Central group. The banks’ 
shares are listed in New York 
Chicago, Paris, Frankfurt and 
London as well as on Spanish 


exchanges. 

The Spanish authorities are 
understood to have indicated 
. approval for the deaL 

The building group, owned fay 
the Cortina and Alcocer ftimtHcw. 
already holds the main stake in 
the medium-sized Banco Zarago- 
zano with 34 per cent. 

The announcement followed 
nunours of a possible bid for 
Banco Central in the wake of 
Banco de Bilbao's proposal to 
absorb the larger Banco Espanol 
de Credito (Banesto). 


COCOA Eponm 


THE LONDON Metal Exchange copper 
market's retreat from a record dotiar 
level continued yesterday when the cash 
grade A position dosed £31 down at 
£1,530 a tonne. That folowed a £20 M 
on Thursday. The three month position 
fed a much more modest £3.75 
yesterday but stiH ended nearly £36 
down from Wednesday's peak. Dealers 
said the reduced cash premium waa 
enoouraged by freer "tentfing" (seSng 
cash and buytag forward). In contrast the 
aluminium market steadied following its 
midweek fal and the cash standard 
position dosed £2 up at£921 a tonne. 

But ft was sti* down £20 on the week. 
Dealers said there appeared to be Bttie 
ftesh tracing incentive In the market and 
prices were fluctuating tai rather thin 
dealings. The zfre market came under 
renamed prassure.the cash position's 
£&2S fad to £47530 a tome taking the 
loss on the week to £1430. 


Cuds «a (par terra! FOB January) 


Lam. 


ZZE 





XX-E 


LULL 


ESC 


!TM1 I ., 1 


IVfv'lT 


enh ezaa 
3 mamba 9024 


(E par tonna) 
sie-20 


COWUEg/wnn* 

Clow Rrawtaua Hgh/Low 


Coppar. Qtada A ff par tama) 

Cash 1S2O40 185MB' 1660/1 MS 1MM0 

Smortha 1321 M2 1328-6 1328/1271 1822-8 

Ooppar. tantari g par tonna) 

Cash 146070 1480*00 1610/1480 14804 

3 mnnBia 1280-310 131080 1300-10 

88wr (US cams/llna ounca) 

Cash 880701 681-3 S807 

amonBU 7106 703-6 700-10 

Load (E pgr fevma) 

Cash 370-1 STM 372/387 887-0 

3 montttt 3843-86 36QQ 868/382 86033 

Mcfcal 02 par tonrw) 

Casta 3600-600 369060 38705 

BmonBw 3840-60 36801 8886/8820 3626-38 

ZfeK (Spar Ionia) 

Casta 475-6 4B3M4 480/477 478-7 

3monlta <754-78 4884-84 481/4744 4707 


*1229 1238 
1258 1287 
1278 1285 
1287 1301 
1312 1320 
1330 134S 
1360 1370 


1237 1225 
1282 1265 
1281 1276 
1800 1294 
1318 1310 
1334 1828 
1364 I860 


W.TJ41 pm aeQ 


3177078^40025 


TumoWR 3038(1324) lots a( 6 tomwa 
ICO Mfcator priow (US canta par pound) lor 
NotMontor » Comp. (My 11636 (11847); IS day 
waiaga 11604 (11&74). 


HiOABSpartpnna 

Raw Ckna Pnvtoua Hgh/Low 

Mar 182X0 181X0 182X0 IMUO 

May 181.80 18160 181 . 80 181 M 

Aug 18240 18140 18240 18040 

Oct 18340 18240 18340181^0 

Dao 8440 18640 

Mw 18840 18840 


Hrg tumoiMr 22460 tonna 

903-4 68.762 lota 

Hina tutawr 63,173 loona 

1324-8 79428 lota 

Rbig tumavar 400 tonna 


72 Mi 822 tots 

Wng hnowf 11478 tonna 

883-4 12409 low 

Bine turoovar 3,162 tarma 

36404 8423 10W 

nmg tumowar 10,703 tonna 
474-5 16468 bW 




POTATOeag/tormB 

Ona Ptadoua Higta/Low 

Fob 974 964 

Mar 884 900 904 904 

Apr 148.1 1501 1604148.1 

May 1614 1834 

Nov 800 804 

Fab 864 884 


E3E3E 


USS22SG3ZX3SE 

2L 


Qold(flnaot) Sprica eaquhtaam 

Claw 478U-47BU 2844648514 

Opantag 478-47BK SMk-OBBVk 

Morning ft( 477% 394% 

Afternoon ftx 478VS 28446 

Day's high 479-479M 

Day's kw 477K-478 


pries 


OOU7 100 troy oac^S/troyOi. 

Oow D avl u ua togyuar 

Dao 488.1 4784 487.4 4774 

Jan 4804 4804 0 0 

Fab 4824 4824 48184644 

Apr 4864 4864 49044804 

Jun 8044 4944 80444864 

Aug 6104 6006 SI 04 6024 

OWAWOgJUICg 15400 fcsjpamaflta 

Oow Pmwtoaa Moh/Loar 

Jan 17140. 

Mar 18940 

May 18940 

J* 189.16 . 

Sap 188.70 

Jan 18140 

Mar 18140 

COCOA 10 tonmag/lomwa 

Clow Pnvkws HWUw 

Dao 1880 1880 1800 1866 

Mar 1863 1863 1880 1846 

May 1890 1890 1004 1880 

Jty 1020 1920 1929 1920 

Sap 1949 1949 0 0 

Dao 1996 1886 2002 1901 

Mar 2017 2017 2040 2010 


:*C*3740aba;canta/t»a 

Oow Pnarioua MgtVLow 

127.13 127.13 12746 13640 

13040 13049 13140 13046 

13240. 13240 13340 132.16 

13346 13346 13440 13340 

13840 13640 0 0 

13748 13746 1374513746 

13640 13B40 1384013840 


Hi ih. 


Ctow Ptavtoua HWLtw 


71 4S 70.1Q 
17149 7048 
TO.12 7140 
7240 71.10 


rT T T 7 




Clow Pravlow Hgn/Low 






Pierioua High/Low 



rvr 




^ :u g S33 




77777 



Pf. . 


,^Vi i 


r 

'X\ 

/ill’, 



'nr: 

.n 

'rtr, 


Prwk»a High/Low 


Trrr-r 


CRiicago 




UVE CATT14 40^)00 fey cmtu/aa 

Pn wio u a HtgVLcwr 


T~T:m- 




T7 


X1L* 






14040 13940 

13140 12840 


'rm 


nrr 


*rr 


m 


1 ~T r r ’ 1 c ! ■'. i 4 ' 


hkUJL 




Ctow Pravtous HWLnr 




m 


T3rr 




¥ 




C72E 


m 








SEE 


S i .' .J i—i 


'7 ;:':p,TT 




■ia4.1.l 




Clow Pravioua 


11640 11640 
117.78 11740 
120.18 11940 
1224S 12346 
10340 10340 
10185 104.75 


HtottfLow 


11640 11640 
11740 11740 
120.15 11940 
123.10 12296 
10345 103,00 
10445 104JS 


Bariay Ctow Previous High/Low 





Ttada to pappor Ire lunakwd extramolv 
■rnlwd and lack ct afftaka by InduatrW buyars 
has mada origin a aia nno ma wtat nBivoui. 
itay am aqwdng ttair pries toaes to onlar to 

ermno more buying Mamt-ao tar wVmri 
mdiUffcaaa.MwtaMto todowaflabtofor 
kmodtott dolrcry mmain mdrHtuly Bght and 
spat prfctt am irtl above ahfpment lawla. 
Mumok wbHa ot fat avsraga quatfhi has baan 
quolad at 38400 a toms and Docambar/ 
January atalpmentat $5400 eH.S a ta wfc Mack 
has baan avaBabla at $4460 and Docambar/ 
January shipment from origin at 34,400 dL 
The maritat tor nuanaga and maeahw baan 
coming under prataura, MflaoUng a ok in 
demand tofloMftg tec yaara of Mgb prices, 
and deAmrin for nod year are being traded 
at stonttoant dtoooum*. 


a 


ii» .... 




softs erica Sum 


Copper (Grata A) 


Jan Mar Jon Mar 


76 76% 70& 112 
86 87 84 127 
5414 6814 9M 143 


Pt 




iM 


izn 


mac 


"TT 




322E 






REUTERS (Base: Saptam&arlS 1931 - 100} 


Now 26 Nov 23 mmh.agp yr ago ■ 


17044 17044 18787 16114 




appointments 

advertising 

£43 

per single col umn 
centimetre 
Premium positions 
will be charged £52 
per single col umn 
centimetre 

Per forther information 
cril 01-248 gooo 
Tease Taylor 

ext 3351 

fotire Vnublei 
ext 4177 
P«ul HararigUa 
ext 4576 

Ktlrahet k Bewaa 
ext 3450 












































r °Hth 


Financial Times Saturday November 28 1987 


WORLD STOCK MARKETS 


NEW YORK 


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WALL STREET 

Prices drift 
lower with 
few traders 

Wall Street stocks were lower bat 
adrift with traders absent and 
investors uninterest ed m making 
amove. 

The dollar was lower and Trea- 
sury yields rose as the Commodi- 
ties Research Bureau futures 
index continued to rise, sithnng h 
brokers saw little reaction. 

The Dow Jones Industrial Aver- 
age was down 7.79 points at 
1,889.66 and confined to a nar- 
row trading range. Declines led 
advances seven to four. 

Precious metal miners rose with 
commodity futures prices. ASA 
Ltd gained S3 to t63U, Battle 
Mountain was up $1% at *2116 
and Newmont Gold rose *116 to 
*3816. 

CANADA 

Toronto stocks, buoyed by 
golds, bucked the Wall Street 
trend in moderately active mid- 
day trading and built on the rafrm 
posted mast of the week. 

The composite index, which 
rose 80 points on Thursday, 
climbed another 20.2 to 3096.8 as 
advances outpaced declines 416 
to 280 on volume of 17.1m 
shares. 

Among active golds. Placer 
Dome gained CtK to C*20, Lac 
Minerals was up CS% at CtlStt 
and Hemlo was up Cf!6 atCSlOH. 
Base metal mining companies 
were mixed and banking stocks 
slipped after rising oo Thursday 
on some good fourth quarter 
ear n ings reports: Toronto Dooiin- 

Closing prices for N America 
were not available for this 
edition. 


ion sUd C*Vfc at C*27U and Bank 
of Nova Scotia was down CtVb at 
012 *. 

TOKYO 

Increased worry over a weaker 
dollar dragged share prices 
slightly lower by the close after 
modest trade. 

News that the Bank of Japan 
had intervened to bay a small 
amount of dollars called Inves- 
tors’ attention to the dollar's 
weakness, reversing early raorn- 


The Nikkei average feQ 13.66 
points, or 0.06 per cent, to 
23,268.62 after hitting a high of 
23,313.60. Declines led advances 
almost five to four In turnover of 
660m shares. 

Pharmaceutical shares, nor- 
mally immune to the currency 
market, feD on short-term profit* 
taking; electricals eased on the 
dollar's weakness; securities 
house shares fell on pessimistic 
sentiment; and textile, service, 
glasa/cement, non-ferrous metal, 
retail, rubber, and warehouse 
shares gained. 

Many broken were disap- 
pointed, having expected the 
index to rise in heavy volume due 
to the start of the December trad- 
ing period and recommendations 
by major Japanese brokerages to 
buy domestic demand-related 

One broker said the market had 
shifted from a focus cm the US 
economy to a more global per- 
spective concerning exchange 
rates while others were optimis- 
tic that Japan would enjoy its 
traditional year-end rally as long 
as Wall Street remained stable. 


HONGKONG 


Better-than-expected results at 
a government land auction helped 
snare prices to dose higher. 

The Hang Seng Index ended the 
day 14.60 points higher at 
2,194.18. Turnover rose to 
HK*942.7m from HK$707.7m on 
Thursday. 

A joint venture between 


Cheung Kong and Hopewell 
bought the main site at the auc- 
tion for HKS470m in active bid- 
ding. Analysts were looking to 
the sole for signs of the property 
market’s health after last month’s 
stock slide. 

Rang Long Development also 
bought a site for HK*265m, a 
price slightly better than expec- 
ted. Cheung Kong rose 16 cents to 
HK*6.80, Hopewell 16 to 
HKS2.65 and Hang Lung Develop- 
ment 10 to UK $4 .80. 

The settlement of November 
index futures contracts will also 
relieve selling pressure on stocks 
next week. The November con- 
tract dosed at 2,178 points, two 
points lower, and the settling 
index of the month was 2,174. 
December contracts gained 19 
points to 2,204. A total of about 
800 lots were traded. 

AUSTRALIA 

The Australian share market 
dosed cautiously higher as inves- 
tors pursued quality gold-related 
and resource stocks. 

Gold bullion's steadiness at 
poet-crash highs buoyed demand 
for mining scrip generally, 
although Industrials enjoyed only 
selective favour because Thurs- 
day’s closure in New York for the 
Thanksgiving holiday tempered 
interest. 

At the dose, the all ordinaries 
was higher at 13218. The gold 
marker climbed 67.6 to 2160.0, 
the all resources 98 to 792.2 and 
the all Industrials 8.4 to 2007.1. 
National turnover was a thin 
105.92m shares worth 
At 164.03m and rises outnum- 
bered fails three to two. 

Gold-related stocks dominated 
as bullion prices opened steady 
on the London close at *477.40/ 
80 an ounce. Hetana rose 70 cents 
to AC9.60 and Sons of Gwalia 
was 60 higher at AS8.60. 


Share prices continued to ease 
In very quiet trading. The Straits 
Times Industrial index lost 3.66 
points to 814.86 from Thursday’s 


*1| IIM CorarattM _|UQ 

4 iMmCI* a 

HwtCta 1251a 

4 NaU&if Catai —llBfa 

WtotoHrdlP 


dose of 818.60. 

Market sentiment remained 
bearish following renewed con- 
cern over the US dollar’s decline 
and lower overseas stock mar- 
kets, although price changes were 
mostly small and restricted to a 
few cents. 

Lack of fresh incentives and 
the absence of any direction from 
Wall Street, closed for Thanksgiv- 
ing, kept most institutions on the 
sidelines and turnover declined to 
13.0m shares from Thursday's 
15.0m. 

FRANKFURT 

.German shares ended largely 
easier as a mid-session rally, 
centring on chemicals, gave way 
to cautious position squaring 
ahead of the weekend. Continued 
tnstablisy of the dollar was also a 
factor. 

One dealer said: "The dollar 
hangs over the market like a 
sword.” He said that uncertainty 
about the dollar meant much of 
yesterday’s trading was between 


Other dealers blamed lade of 
interest before the weekend for 
the share fall. 

In chemicals, Bayer ended at 
DM270, DM2.60 above Thurs- 
day'sdose. Hoechst also showed a 
gain, rising DM1.40 to DM26480, 
but BASF, still weakened by yes- 
terday's news that interim pre- 
tax profits rose only 0-4 per cent. 


edged lower. 

In banks, Deutsche lost DM2 to 
DM424.50, Commerzbank slipped 
DM0.50 to DM225.50 and 
Dresdner was unchanged 

MILAN 

Share prices closed higher in 
active trading on the monthly set- 
tlement date, with Ferruzzi Agri- 
cola Finanziaria and Fiat among 
stocks sought. 

Ferruzzi Agricola Finanziaria 
closed 4.1 per cent up at L1.413, 
following the Ferruzzi group's 
announcement on Thursday that 
it would nominate its chairman 
Raul Gardlni to the post of Mon- 
tedison president. 


SSJ&z 

RtfOTrMA. 
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TimCm-Ftpr _ 







































































































F inancial Times Saturday November 28 1 987 


CURRENCIES & MONEY 


LONDON STOCK EXCHANGE 


FOREtQN EXCHANGES 


Dollar slips to record lows 


Sterling helps Gilts hinders equities 


YESTERDAY'S WEAKER dollar 
trend was really a logical atten- 
tion of market sentiment It was 
the timing that caught most peo- 
ple off guard. Sandwiched 
between Thursday’s holiday in 
the US and the weekend, activity 
was expected to be very subdued 
and certainly not sufficient to 
push the dollar to record lows 
against the D-Mark and yen. 

Yet with hindsight, dealers 
could find little reason to wait 
until next week to punish the 
dollar once more. Prospects of a 
successful and early conclusion 
to talks aimed at gift wrapping 
cuts in the US budget deficit for 
Christmas were seen as less than 
encouraging. 

There were no economic statis- 
tics of note to provide any sup- 
ports the dollar was sold. Trad- 
ing volume was below even the 
relatively low level experienced 
on a normal Friday but was suf- 
ficient to push the dollar to a 
record' low of DM1.6535 before 


dosing at DM1.6540 down from 
DM1.6685 on Thursday. Against 
the yen it fell to a record low of 
Y133.55 and closed at Y13S.65 
down from Y134.55- Elsewhere it 
slipped to SFr 1.3675 from 
SFr 1.3686 and FFr5.6250 com- 
pared with FFr5.6625. On Bank 
of England figures, the dollar’s 
exchange rate index fell from 
95.8 to 95.4. 

. Sterling rose to its best level 
since May 1082 against the dol- 
lar, closing at S1.81, up from 
$1.7945 on Thursday. Dollar 
weakness and a growing convic- 
tion that UK base rates were 
likely to stay put on til the New 
Year gave the pound a strong 
undertone and dealers suggested 

that there could be another push 
on the DM8.00 level, until now 
so jealously guarded by the Bank 
of England. 

The pound’s exchange rate 
index finished at 76.0 up from 
75.7. It was unchanged against 
the D-Mark at DM24950 but rose 


to Y242.0 from Y241.50 and 
SFr2.4675 compared with 
SFr2.4550. It was also higher 
against the French franc at 
FFrl 0.1825 from FFr10.1625. 


Accaat DoBq Driv 
Optos 

Decfax Lot 


FINANCIAL TIMES STOCK INDICES 


picked, up a 2.0 per cent stake 
and could, well launch a counter 
offer. 

Several bid chestnuts resur- 
faced in the Engineering sector 
following Blue Circle's Interest 
in Blrmid Qoakast, There was 
little evidence of the former 
adding to its 2.8 per cent holding 
yesterday but Birmid were 
excited by bid possibilities and 
rase to 2G0p before ending 0 up 
on the day at 25Qp Others to 
prosper were Del ta , 9% dearer at 


■Fat Deck* Lot Acorn t 
Date tow Date Iky 
OuS NwS HwT Nsr If 
Nsrf NwB Nw* 'Nr 31 
Nr 23 Dec 3 Dec 4 DccM 


D-MARK-Trading range 
gainst the dollar In 1987 is 


against the dollar In 1987 is 
1,9805 to 1.6640. October 


average 1.8011. Exchange 
rate index U14 against 146.7 


rate index IMA against 146.7 
six months ago. 

Growing disillusionment with 
the limited affect of recent 
efforts to reduce world trade 
imbalances resulted In further 
dollar selling in Frankfurt The 
dollar closed at DM1.6575 from 
DU1.6665. 

JAPANESE TEN-Tradlng 
range against the dollar in 
1987 is 159.46 to 183.65. Octo- 
ber average 14347. Exchange 
rate index 229.6 against 2224 
six months ago. 

A lack of confidence prompted 
further dollar sales in Tokyo. 
The US unit fell to Y183.75 from 
Y 134.75 on Thursday. 


LONDON'S SECURITIES markets 
continued to limp along' in the 
path of New York’s subdued 
return from holiday, with only 
the renewed weakness in the 
dollar giving fund managers' 
pause for thought 

A move by the pound to above 
$ 1.80 far the first time in 6% 
years, discouraged the blue chip 

exporting stocks, while -helping 
Government bonds to add Vi a 
point But turnover in both sec- 
tore was again very thin. 

Nervousness over the pound 
was not helped by a prediction 
from Warburg Securities, the big 
UK investment house, that ster- 
ling could reach $1.90 “or even 


(Moot. 


Wti 

Lre 

9532 

83.73 

019 

a9O0) 

9U2 

9023 

(25/6) 

am 

19262 

IWI 

06TO 

(9/11} 

4975 

2616 

W8) 

(6/111 


ShmC«wnato 
Htfl tw - 

UJA 492* 


E^Yuwtau—J o UM EAT ux ua "*g -l 21Cp. Chamberlain 4 Hill 

P/E Rata (n«X*) UL4S 1047 2090 1046 1043 11*1 w SSSrf 1 

SEM!B* V *.(Spnd 1VW 17.29S 2^0. 2*205 2605 ggK!! 1»« gRineS 

EwityrntrOrt - 783.79 946.77 93523 a*M u«UB Me*""*-— m to j 3 ^ and Bdbra advanced 

Barton - i%m 25,707 26432 27415 " yj£ HAj IQ to 203p. The sector also had 

Stare* Traded IraO - 316.0 SU 4034 3490 362a EnfeUrtn 1715.9 1738a casualties, these including Tlf 

I I down 6 at 267p, and RHP, which 

f Opening 10 aun. 11 am. Noon 1 pm. 2pm. 3 iuil International stocks took their 

]308i 13133 13123 1312.6 13113 1312.6 13083 1309.4 cue from another we&k perfor- 

l l— I ■ rnance by the US dollar and. 

Day's High 1313.4 Day's tow 1307.2 with only the rare exception, 

Basis 100 Com. Secs 1300/26 Reed tat. 1928, Orttey VJI3S, tod Macs 12/9*5, S E ActMty 197A * I SM P m. dosed lower onthe day. FiM»S 

gave up 9 at 239p ana Reuters 

LONDON REPORT AND LATEST SHARE INDEX: TEL. 01-246 8026 ^ 1 V t to^? l Ag5!Sfth! 

J _ trend, Beddtt and Colman rose 

continued to edge higher. #<*0*: tie-up creates a TV Life assurances made modest 9 more to 753p in a restricted 

although the gold producer v^eo rentals operation with progress across the board, n^et and Wellcome put on IS 
issues tad a Shell over 3m rental agreements ©per- Abbey attracted pennstent sup- to 39 ^, on talk of a James Capei 


4.41 2st- 

tofcr* 

U.91 OREdadBeVto 
EorieswiH — 

EgrttyMtar 

U4602 Mviww 

GaEdprtfers*** 

362a EutoVkto 


awiro (W105> 00773 

9023 VGA 5053 

am (2S01M7) 00/75) 

iron wa 62 49.4 

nau 06/7/87) ovum 

734.7 405 

(601) Q5/2/B3) |a6flW7P 

S.E ACTIVITY 

Sen I Ntt26 I NmfJS 


and Simon, 7 higher at 
Chamberlain A Hill 


£ IN NEW YORK 


POUND SPOT- FORWARD AGAINST THE POUND 


ling could reach $1.90 “or even 

It is the weakness of the dollar; 

despite the combination of US 

moves to cut the budget deficit L— 

and interest rate reductions in 

Europe which has unsettled Lon- continued 

don’s fund managers. although 


£ Spot 1.80TO-1 

1 month 03001 

Smooths 1163 -Oj 

12msoths_ LBO-L 


1-8070-1.8060 L7920-L79Z5 

030029pra I 034-Q33pm 


Fmmd mtmlnm Hd dbEOrntt ato tt ttm US fcetnl 


STERLING INDEX 


8J0 


HoLZJ 

76 JO 

Onflow 

75.7 

960 

an 

76.0 

755 

10-00 

MB 

75.9 

750 



760 

75.7 

Mm 


76.0 

75.7 

LOO 


760 

755 

2JOO 


760 

755 

3.00 


760 

755 

460 

re 

760 

75.7 


us isaramo jmk-ubos ooscaecre oi6 

CMh 23617-23692 2J670-23U0 0-02 -032c* -035 

3 SS2^ ^ 

□court _ 1L5&-1L57 1136-1157 lb-3XmtA -259 

hefand 13065-11300 13265-13275 oAflSafc 4137 

W. Genre* 2.99-3X0 299-3.00 llj-lWp. 551 

POrtaBJlZ. 24100-24530 24355-24455 91-lSoto -557 

SpZrZ 201. *5-202.17 2m50-2aL90 95-UOcdh 4x« 

Sj 2203-2216 2207^22066 pv-6Hndb -163 

Sendee 10541.-105W, 10581.-108% -055 

tap tm 29Pj-242lz mM-MZh 4.96 

tastrta 2 l 5-21.I1 2LO7-ZL10 8V7Wore 455 

Sntaertand. 2.W,-2 jW, 2.45V&46I* 1<-Wa 539 

BtWw ou ts cnwftato <«3. Riittol timm M5563J5 . Th — U 
12«MttL75-165can 


10 am 
13133 


11 am. 

1312J 


Noon 

1312.6 


Day's High 1313.4 Day's tow 1307.2 

Bmds 150 Com. Sma 150001, R*4 M. 1920, Orttery mm. tod Macs 12**8 S CAttWflr 19K, * M ml O J)- 


LONDON REPORT AND LATEST SHARE INDEX: TEL. 01-246 8026 


At the same time, London <amp« had a aomrfnn Shell °Y er re ntal agreemoits oper- 
institutional investors realise stood out again in an ofl stare at ? I }3 frtxn around 2,000 outlets 
that UK rates are unlikely to be market still upset by crude price wit h pot ential cut savings to the 




lowered just now, and were not u ncertain ty 
surprised by the rejection by Mr Govemme 


Nigel Lawson, the UK Chancellor 
of the Exchequer, of the need for 
lower UK rates. 

Stare prices opened tower and 
proved unable to sustain 


the rejection by Mr Government bonds were “very ’■ 
, the UK Chancellor quiet", although some sources 


enlarged group of some &lfim a and settled 4 up at 


Legal & General 


>d by a recent Wood recommendation. British Aero- 
buy recommendation, mace were a weak market and 
L 4 up at 238p, while feU 13 further to 300p and John- 
lenewOaddeda sum- mtm Hatxhey dipped 22 to 228p 


Gr enad a Grasp shares were lar amount to ffiBp. Ftoii fn- D n worries about a possible plao- 


reported some support from the finally a penny easier at 262p; tured with a 10 jump to osot 
UK Denakm funtfaT Prices were **» company is scheduled to with dealers pondering the posai- 
damped off at the by a announce interim figures on bilire of the start of a stake- 


damped 
weak | 


performanmee by 


December 9 and Chase are fore- 


attempts to rally before sliding bonds, reflected in a do wn t u rn casing pre-tax profits of &108m Composites wore quie 
away again to end on a weak in bond futures. against a comparable figure of as were broking issues. 


away again to end on a weak 
note, plumbing new Iowa for the 


in bond futures. 

“Gilts are still a safer place to 
be than equities", commented a 


nun price war. Publicity 
to a broker’s circular helpe 
N rise 4 to 254p, while & 


operation in the stock, responding 
ites_ were quietly mixed to ^ co ra p 


to a broker's 


Trevian, a 
a weak merit group, s 


pany and a posi- 
SU€S - . , tive lunch with SBCI Savory 

^per ty de velop- Man , firmed 6 to 199p. Slab* 
gained 12 to 281p in reply to 


DOLLAR SPOT- FORWARD AGAINST THE DOLLAR 


CURRENCY RATES 


session. be than equities", commented a “*■ “ a m^l^oup. staged gained 12 to 281p in reply to 

The FT-SE 100 Index dosed US trader/ This Wek has seen market recently following specu- debut in fee Unlisted Seoiritles fxceUent interim results and 
9.1 down at 1651.6. Equity turn- institutions uncertain whether to lati 2£ «* "poor sales in the run up Market, the shar^ opening^ Dominion international added 
over was *< atilar to that on stay in or to take profits Cluistaias, canmunder fur- the p lacin g, price of 70p and edg- 3 to gjp following satisfactory 
Thursday, when SEAQ bargains out of the sector and move into ther h^vy seffing paesmre after ing forward to 73 p, ^ ^ half-year figures. A positive 


Hot2T rate 


SpkU EvopMB 

Drawing Currrwcr 

RMts IMt 


Sterling 

USDotar 6 

CMadtaaS — 875 
Airartao SdL _ 4 


DeuBdwMirfl 3 
NcSutoMer— 4 
French Franc _ V, 

ItxUaD Lira 124 

Japanese Yea . 2h 
Komn Knse . 8 


Swrrfeh Krona I Tie 

Swiss Franc I 3 

Greek Dradc^J 20b 


R/A 0669138 

124562 

• 163051 

K/A 145164 

430419 
7.95762 

- 7M317 
?-cwat 
751843 

- WWW 
166539 
B.00932 
139573 
7.48491 
169279 
162589 
a 77 6618 



tack into the equity market. 


totalled 17,296 , and less than rash - there has been little 
one third of the Black Monday this week of intentions to i 
week’s levels. back into the equity market 

injaon reached accord on budget 1 

spots, rising 34 to 701p refle 


led '17^96 , and less 'than cash - thera has been little sign c °“P a "J representatives tater-market activity tyougnt statement on' trading prospects 
third of the Black Monday this week of intentions to move addressed institutions in Scot- swift responses in selected Brew- ft^ed to sustain Tale and Valor 


land. 

The stares dipped 7 mare 


ly at the diversified i77p after a turnover of more 

UK-based, sugar refiner, provided than Sm stares with Smith New 


ery issues. Bass featured among w hich softened a couple of pence 
to the leaAng stocks mth aiur^o* to 235p, but Btidon madefur- 
fre 19 to Slip; the group * ached- ^ p^grera on takeover hopes 
m tiled to report prehininaxy fig- and Sored a penny higher at 


cuts and Germany led cuts in 

STw a . <» »>«*■ positions 


European interest rates, has lost v. m oe T Financial sectors lacked Impe- profits of around 5380m. Market- Advertisme Agencies were one 

the dolta^tas weak- ^d^toeanmia 1 results due hr eWterdfrecttau^ed^r- makers were aboduudiig redi <rf ti^Sghte^^wrs of tta- 

ened over the US Thanksgiving II ^ tag banks moved hi^ur during other’s tails m Scottish * New- xnBTket _ kSeston seemed to be 

holiday « * ah area j have performed the morning but tended to run castle and the sharp rise In the heedins recent advice that the 

“Forthe firet time, the markets SSfisSTLSR ^SS 1 S S 1 * °f 8tear ? 88 *5 da ^2? re shares of 11 *° 222p *° seSr^faSTtald been Jv^done 

satisfactory results from its Ruvim Minnn>d tn Mrhr uwnilatinnthat. Npt Tp-nlnnder < - 


*CS/S0R rate for Noi26 N/A 


CURRENCY MOVEMENTS 


EURO-CURRENCY INTEREST RATES 


house. 

Also discouraging investment 
confidence in London was a poor 
response from UK Investors for 


sts expect the company to 
ice pro fi t s of around S90- 
. far the frill year. 


land were finally a couple of Recently-acquired Matthew r« wmired and ram* 9 mow to 


Electronic Eeatala (ERG) unalt ered overall at &48p;the 



of shares to 
is and invee- 


Fr. Franc 

talMLiic- 
X Fr. (Rn) _ 
a Fr. (Coal . 


© 


company at around £1 
lands Philips group, 
21.8 per cent of ERG, i 


50m; Hoi- Octoba. 

header of Royal Bank of Scotland 


1-71 7V-7>« 


M or EWto Mm Otat AMM8* 8 h> ion 9V9 M cmi mW. Suit mm ittMOta US DbSkmI i*)des? 


the S770m offer for sale of surged 6 to 78p, after 79p, after proposed offering of shares to 
shares in Eurotunnel, the Granada Group announced an Japanese institutions and invee- 
Anglo-French Chann el Tunnel increased and agreed bid valuing tors has been postponed follaw- 
groop. the shares at some 85p and the ing the crash since mid- 

Among the Uue chip exporting company at around £250m; Hoi- October. 
gfrv-w Ici looked dull, Glaxo land’s Philips group, holder of Royal Bank of Scotland 
continued to give ground as the 21.8 per cent of ERG, irrevocably dipped 2 to 293p ahead of Thurs- 
market assessed the implications accepted the hirfier affer.Gran- day s interim results. Standard 
of the threat to pricing erf Zantac ada’s original oner valued ERG Chartered, bought recently 
from the French regulatory at around 5210m. after Robert Holmes a Court’s 

authorities. Chase M an h a tt a n Securities* interest sold the 10 per cent 

Despite a ■ bullion price Brian Newman was enthusiastic stake in Texaco, slipped back 6 
trend, C um nrl Hw MH Goldfields about the merger of the two to47Bp. • . . 


whUe VPI recovered & to 215p 
pathy. AUied-LyOTS finned to &nd Lowe Howard-Spinks 

gained 4 further to 289p.AblK7U 

Vlck “' '“p”™ 1 10 “ 

and of extended terms to March 


Mmw.i.i-m -MSSSMSJB 


underwritten and was oversub- 
scribed. ILP-Balmer went better 


ion. Land Securities tired 10 to 


440p in the absence of support 
anoMEPC lost a similar amount 


after Robert Holmes a Court' 


Chase Manhattan Securities' interest sold Che 10 per cent 
Brian Newman was enthusiastic stake in Texaco, slipped back 6 


oenweppes K7 qobb O xugnBT M at 417p. British Land were 3 off 
147p. The odermaker has sold a , •>&£. havinn -i.— a •_ <n_,_ 

Re “ _ Creek, a UK.autaidlary 5*^,,!^ 


t-JfwSf U P 10 227pJout recent teke- 


OTHER CURRENCIES 



EXCHANGE CROSS RATES 


Z 

S 

1 

0352 

1510 

1 

0334 

4032 

0604 

7579 

0.983 

01407 

L77B 

0737 

0297 

0453 

0537 

0520 

042 

L595 

0765 

2887 


Yes F Rr. IS Fr. H Ft 


1995 M25 1008 2.458 3568 2208 2568 I 62.70 

1655 133.7 5626 USB 1560 1220 1508 1 3464 


8050 3u40Q I 0521 1024 7375 0.790 | 2033 


2.413 3507 2168 2325 1 6158 
1 1570 8985 0.963 j 2551 


6S5JT 0-703 3862 


Yw ftf ifiOOi FfMd> Fr. per 10: lh> pv OOOtt BdaM Fr. per UOL 


MONEY MARKETS 


London rates little changed 


INTEREST RATES were virtu- 
ally unchanged in the London 
money market yesterday. While 
sterling remained nrm, recent 
comments made by Mr Nigel 
Lawson, the Chancellor, suggest- 
ing that now was not the time 
for a cut in base rates, tended to 
deter traders from forcing the 
issue. 

Three-month interbank money 
was quoted at 9Mt-8 i % p.c., 
against 9-8*%* p.c. on Thursday, 
while weekend money slipped to 
a low of 7 p.c., after opening 


& 78 tn in band 2 at 8% p.c. The 
balance was made up of sale and 


repurchase agreements on £56m 
of bills again at 8*%* p.c., 
unwinding in equal amounts on. 
December 14 aim 21. Late help 
came to S345m, making a total 
of 51,625m. 

, Doubts about an early cut In 
UK base rates were reflected In a 
rise in the average rate of dis- 
count at yesterday’s weekly 
Treasury bill tender to 8.4842 


P-c. from 8.4431 p.c. The £100m 
of bills on offer attracted bids of 
5670m against 5833m for a aimi-i 
lar amount the previous wed? 
and all bills on offer were 
alioted. 

The minimum accepted bid 
was 597675 from 597695 and 
bids at that level were met as to 
about 16 p-c. and above In full 
Next week a further £100ra of. 
bills will be on offer, replacing 
maturities of 5200m, i 



easier whe re ch anged owingto a with a gain of 5 at 350p. Moon- 
lack of buying interest. Bine 3 rn laon- the mm- 


Sraa 

close 10 off at SlSp. BPB Indue- t „i- m . — oHmI 
tries failed to attrart a ny worth- 
while support despite a mildly 


tag the buy-in of 
10 per cent of the 
•y capital. Land 
10 to 175p follow- ' 


whfli / mTvnv tag acquisition news, but Spey- 

SSglflKJ J hnwkspurted 10 to 233p amid 

interim ^1 anhettied 7 rff l*? 


U1UU1U1 1CSU1U <UIU KUKU I UU -—I Tflf. -t KFFnrl fllii ■ 


bS-RMC 6 y to 40^^’ ^ S 

Features in the ChemkaS sec- SSS-PSESJiK.' 
tor were few. but Anchor eon- 2 P«™I»tive support of 


tor were few, but Anchor con- 
tinued to rise on reports that 

company and cloaedifi higher at s v B oSJrl£^I g a Ereshnse of 16 
S^rnedy has inc^^ta £e“§^£S5 

SdSSSUftoir^S VS. 01 *" 


Mersey Doc* tk Harbour units. 
Bid hopes added flavour to the 


via market purchases and spent 

aSs aSSISr-rS 

ZT3i on MonSy^S ™ **&**!»*'. 


The returning spectre of expo- 
sure to the US dollar unsettled 
Ckmrtaulda, down 8 at 325p, 


change hands on Monday and 

has made an official bid w ^ e U P 6 at 99p. 

approach to Anchor. Leigh- f 

In te rests mrfnprf is tn i77n in ‘F® rise of 25 to 600p in Ben- 


report mid-term results this 
week, slipped 3 more to 186p 
while Tootal gave up 6 at 99p. 


iCw^MIIIIKJFlim 


Interests gained 13 to 177p in * H m 

reply to doubled interim profits 

and Coalite hardened 4 to 289p. i° 1 i owln g a report of 30 b losses, 
Wardla Stnreva slimwd TO S “"iF speculative advance of 16 


Wardle Storeys slipped 10 to 
516p. 


FT LONDON INTERBANK FIXING 


nearer 9V6 p.c., before coming 
back to finish bid at 10 p.c. . 


bid at 10 p.c. 


0150 *■. Nk27> 3 1 


The Bank of England initially 
forecast a shortage of around 
51,660m with factors- affecting 
the market including the repay- 
ment of late assistance and bills 
maturing in official hands 


Tt* fixtag rrn i-rf~T TT*tfTmr- -nrnn nm-tiilln ftn ■wr i n i bi ifmi Bl i. nf I 61 I/ll ml 1 

no* nitot to Ita rwnct bMto a 3150 tAMSmSae Of. Tfev to 


MONEY RATES 


UK d ealing bank base 


lending rata 9 per cent 
from November 5 


NEW YORK 

(UndShne) 


together with a take up of Trea- 
sury bills draining 5610m and 


Treasury 80s and Bon* 

taoma 456 IkMjw. 

Twowcrti 451 ron w- 

875 Tlnrawb 5J9 

aao s>me 647 SmyMr. 

68 0 "i year ... 7X4 10-rer~ 

*5 Twoyor 7x2 30*«r_ 


surj- bills draining 5610m and 
Exchequer transactions a further 
5705m. There was also a rise in 
the note circulation of 5340m. 
On the other hand banks 
brought forward balances a nom- 
inal 510m above target. 

To help alleviate the shortage, 
the Bank offered an early round 
of assistance which totaled 
5532m and comprised sale and 
repurchase agreements on bills 
at 8% p.c., unwinding In equal 
amounts on December 14 and 2L 
A revision at noon took the 
forecast to a shortage of around 
£l,7Q0m, before taking into 
account the early help. The Bank 
gave additional assistance in the 
morning of 53l7ra through out- 
right purchases of £2m of eligi- 
ble bank bills In band 1 at 814 
p.c. and sale and repurchase 
agreements on 5315m of bills at 
8% p.c., unwinding in equal 
amounts on December 14 ana 2L 
In the afternoon the Bank 
announced a further revision in 
the forecast to a shortage of 
around 51,760m, and further 
help was given of 5431m 
through purchases of SSfiffm 01 ? 
eligible bank-bills in band 1 and, 


OniufeM 

On 

Marik 

300-320 

14573 

LOO 

45875 

15JMJ 

1005 

750 

3»ie 

BJ50 

US 

4.75 
3.96075 

11575 

65875 

8.75 


LONDON MONEY RATES 


McrtairO!fcr. 


SMfUnCDL — 
teal USD Dm.- 
teal Astocfn Bade _ 
DbaiBt MttDen. 

Cwrebsfe— ~ 
Fiamee Haas* Dtpai*] . 

Traasonr 8IBs (B*y> 

Baric BiMl (Bov) 

foe Trade So (Bqi) - 

Defer C81 

SMUaMfcpOfcr- 
S0RLMctdDtpBid_ 
ECU UriodDq) Offer. 
ECU LMadOcoBM 


Hariki 

UartH 

tm • 

95625 

90625 

90875 . 

59375 

19375 

9025 

8575 

8575 

8575 

8575 

8.9375 

90625 

94625 

90625 

9025 

825 

800 


950 

950 

9125 ! 

950 

950 

925 | 

80S- 

« 


04875 

8468750 


9525. 

9595750 


755-750 

745-750 

850-7.95 

&50 

65625 

675 

625 

550 

650 

7025 

70875 

7J125 

75125 

75635 

70875 



to 66p in Motedmoteg yl ave rt - 


Doom remained a weak mar- 2SSST" 
ket and retreated 9 more to 207p, “P 

still depressed by the recent m , eetin 8 


pressed oil and 
Itiali Gaa lost 


% Issues, 
more to 


1988 has been cut from S14fanto Comm j 3sl ?° reference _and 


recent bearish comment 


5135m. bearla, “ oonunent try ! 

A busy week in the electronics 3 . to T7wp 


and electricals sectors ended an 
a relatively quirt note. Thom 


turnover of 23m shares and the 
“old" fell a similar amo unt to 


M AWM6VOJ Hura uuic. ANUCS OCT— — : _ 

KW, a weak market on Thurs- ^j£„ on v * *™?iS yer 01 5 - 6m 
day when Flessey’s purchase of 7 reomt US support was 


Ferranti's microchip business sa j£L t0 h ave d ried up> 
effectively killed hopes of the * currency influences mffi- 
company buying the Inm os tateda^inat any improvement 
stake, rallied strongly to close 16 ta Overseas Traders, some of 
higher at 641p;the company 2n““ r ^#£ t f r ® d tizetirfe losses, 
announced it ia buying the « n8t « 211 p and Inch- 

remaining shares in its Austra- dropped 12 to 575p. 

lian associate for same AS 104m. 

7%om EMI stares were addition- TnrfltlniMl IWUm 

ally boosted fay substantial buy- ■ raoiXKHiai OptiOltS 

ing interest thought to have rep- _ 

gasa* CTT ^ 01 o^o” 


Traditional Options 


A brisk 11m share turnover in 


• Flm dealings Oct B 

• tast dealings Oct IA 

• Last declarations Jan 7 

• Settlement Jaa IS 


Tnvr sun ten: 


* 9 * bet Jim Hntae Att 03 hr* Kownter 1 . 1987: Bsric bHritteBtorsnia 
MWUtetMjfe 3-35 afc tri.CtrtflM M_QfTiDeiiQa Cgte 6t; Pawn Ofl^OO wd w Wdtfer 
— — T g r- o ^ 1 — "* hi iii p— rtiinTuM fife. ii< ifi mu nm 
pg ow; iWWnMfe SSI tm art; lOvtimOQO 750 W K» ferertr & . DWwA* 
■BSM Hr cm 3JDD pw onL 


Km BMfei B% pv cart Brik sn (risk MMoatb 8S 

b;6rag( tender rttri dbmm 85B77 uOCtD FM 


Option 
Britten 
(*309 > 

300 

330 

360 

Feb. 

35 

22 

15 

»>e 

45 

32 

23 

Art 

53 

42 

Ffe. 

28 

45 

68 

m 

42 

62 

80 

Art 

47 

67 

8M 

90 

19 

18 

23 

11 

14 

IS 

(•98) 

•100 

fl 

14 

19 

U 

21 

24 


US 

7 

12 

15 

27 

30 

33 

SAT fee 

390 

50 

63 

77 

20 

95 

42 

(•417) 

420 

35 

45 

9B 

95 

50 

95 


460 

IB 

30 

42 

60 

7S 

02 

SrtTitacre 

220 

16 

25 

S 

21 

25 

95 

(•214) 

240 

8 

13 

25 

35 

42 

47 


260 

» 

10 


54 

SI 



220 

27 

94 

40 

13 

22 

24 


240 

16 

22 

30 

25 

32 

35 

farin 

220 

50 

60 

65 

8 

17 

22 

(•258) 

240 

37 

47 

53 

U 

24 

35 


260 

2ft 

as 

42 

27 

95 

45 

tedfeota 

280 

45 

57 

.» 

17 

23 


(■306) 

300 

30 

45 

53 

23 

35 

40 


330 

16 

30 

40 

43 

50 

57 


comment on the half-vear 

uied for Tuesday; 


Tr. m* 1TO KM 

(•107 > 106 

xos 


Tr. 12% 1995 
<*114 J 


Tr.llVK«Q7 

(119) 


1JJ : 

irtti 


ale are forecasting pretax profits ***** 

RTZ earlier in the week- as spec- Inda, Lomdom 

nlature moved in on news that No “>***.- 

French group Legrand had- ■ , dS5rf^SniSSL anMlflad 


Metal Box, Camford 
Sapphire Pet, Star 


In 

Nri. 

DK. 

Jre 

M. 


tea 

1500 

160 

100 

210 

225 

Oa 10 

« 

1550 

110 

140 

170 

190 

1 23 

40 

1600 

62 

102 

196 

1» 

3 95 

58 

1650 

12 

70 

U» 

125 

16 60 

80 

1700 

2 

50 

77 

100 

S 90 

107 

1730 

Of 

30 

60 

SO 

TOO 120 

in 

1800 

Ob 

20 

43 

70 

150 160 

170 


Sapphire 

Camferd 1 
mdgs.Ptt 
Secs. 


complrted. 


NoHnSv 27 Trial Carinas 19AU Crib 7JW feta MJtt 
FT-SE feriB Grib 578 feta 1.971 

“U teta a tertta. 


NEWH'GHS AND LOWS FOR 1987 

* ”P? < > J. r — ^ ape. ■ lass. 

■ i f craw OTn**s<a fffcjanewe m 


■teELBCTraCALS 
goons mwousna- 


Titvrra 





'•*- • ..... 


. “1 


*1 

' ' ! 4 


4 ^ 


-w. 





























































































13 




Financial Times Saturday November 28 1987 


LONDON STOCK EXCHANGE 


DEALINGS 


tolnc^in^f ^^L! !! UafttMnLrecsnbd 


idMttheprcriovsdv. n BagtekmoMi 


_ . .)PLC3%%Cu»lstRf 

SkB -4C{24*io87) 

9% 1st Mtg Dab SK 88/83 - £98H# 
Cannon Street kwastmonn PLC7J% Cnv 
Cum Rad Prf 04*6 - (71 (M*U 

mm gawi twi m nmm cwAtoA.PLCiwiw.aki 
* “mMSU tin Senfes. C^ilnAiwjw PLC9K% U« Ln Bk 

Otembsilata R#p* new Cln RIE1 - 
61 (2SNO07) 

Channel Tumat tavaMmama PLC3p .802 
SOS 105 

©tamo* PLC 7H Cum Prf£1 -M(24MoB7) 
P o rnn gtora Indutetal HMgv LdW Ufa In 

10K% UnsLn stk 83>M -£W) 

ChtofWe Group PLC7%% i«t M« Mb Sk 
BSM -C90{24No$7) 

CMriutr .) plcoto iop -sr&Maen 
Dotes Patsna PLCSV% Una Ln Sk 2002107 

- E70 

7Virtti Una In Stk 90/95 - EBSV 
CbnsVlyettPLC^WCumPrlEI -6 4 
Cchan(AJ & Co PLCNoaV -A" CM 20p - 

4OO{20Mo87) 

CotanafWWam) PLOW CM. Stk SMB - 

two 

Comten Qraup PLC7V% Uq In SK92/07 

- £86 ( “ 

l%% Cun Ptg Prt El - B0 


Corporation and County 

StOCkS Wol of terming lm*^wf37 
t««^caimyw% Cm 5k 1320<or«tte} 
aww Umdon CnmM% Sk SMB - 
a^^wn Crap2%%Sk 1826(orMw) - 

^ 8A1W7|cirmia!2- E28M Ba 
3% (1902) Tester afar) - *28% 9X. 
ensmi CoroDeb8k<3b%) -J33* % 
Gbagow C«p3«% tod Sk -£33% % 
L»^i OPP W Had SA ISiaor aJtart - 

zZan Sa 


TS8 Gnu*) PLCOrd 2Sp - 10*% 5 5 % U % 
1b 677*888910101.1 

i PLC7K% Cue R1 Cl 


LJ m*4aT p21i% Roc ' ** 1923 ( oraK *o - 

3% Rod S* vustor afur) - C26K 9 k. 

oQIIJUi Rad Sk 2007 - 


189l 3% ftofl Stk IMIfor a8k) -WBvt 

Mertorflionaon Borou£i d)lTK% Rad S<k 
2017 - £108 (20Nc87) 
NWCWj-UporKTytwpaCy Of)11%% Rad 
Stx 2017 -C107K 

Now** Corps* Rad S8c - *28K S 8. 
JJ^ngliuTi CorpOT. S« Ontl) - S28* 98. 
OMum Corp«% Dad 8tk - *28 % 
Readtng Corp3%% S8c - E34X (2SNo87) 

S*«W CrapStk(3%%J - £33% K 


UK Public Boards 

No. ol bargav mokmad4 


Corp ncsK% [tab 


Agrieutam 
Stk 93195 - __ 

8S% Deb Stk B5J90 - *91% 

7%% Dab Stk 91*3 - £89 (2SMo87) 

CwmOum (W ater AutfwrityS** Bad Sk 

Por *^‘-f«1° n AMhortty5»%Ttag Stk 87/90 ‘ ^^TOM ^gSi SwSwT ** 

-£8 °* ManafleW Brnrary PLCOrd CT - 467 .984 


ASad-Lyong PLC6H% Cun Pit El - 51 

£*%CWnPrf H — 88 (24No87) 

3% Red Dab Stk 65*0 - £88 (MNoB7) 
8%% Red DabSk 84*9 -£»4*(23Ho67) 
«%% Rod Deb sac 87192 - cask 
7%% Rad Dab 8lk 88*3 - E87K (24No87) 
11*% Dab Sk 2009 - £itt%# 

8%% Urn Ln Stk - £81% 125*1067) .. 

7*% Uns Ln Stk 63*8 - E86V. B - 
Ban PLC«% Cum Prf £1 - 38% (2SNo«7) 
7% Cum PrfEi -66(2)4087) 

89% Deb Stk 87*2 - £81 «# 2K# 

8%% Dab Stk 8742 - £99 5 (24NoB7) 
4%% (ins Ln Sik 92*7 - *88 (24KOS7) 
7%% Una Ln Sflc 92197 - £87 8 
Bass kwastmenu PLC7%% Una Ln 9* 

92/87 - £84 

Bdtkflnoton Group PLC9%% Cur Una Ln 9k 
20004)5 - £T3o (2SNo67) 
BuknotXKP.IHtao* PtC9%% Cun Prf £1 - 
tT9 (25N067) 

8*% 2nd Cum Prf CT -109 
DavenahtJA.) PtCSK% Cun PrfSHc Cl - 
5l(23No87) 

Eworsrds Browary LdS% Cun Prt £1 -57 
(23N087J 

Fuier.&ntiai 6 Turner PLC7K% IttUtg Dab 

c*ir ftOAia — «n 

Gnona wnaey Pic-AT Ora 5p - 110 
QUNnBn - 

mTSnPiin -loo 

8M% tnd Lira Ln Stk ~ £70(251*07) 
Qwatw King « Sons PLCBK% una Ln Sk 
88193 -£84 

Hardys 8 Hansona PLCOrd 25o - 98590 
C5N087) 

Htavttaa Brawary PLC11M% Cum Prt £1 - 
V44(20No87) 


:0K% 2nd Dab Sk 9095 - 


Foreign Stocks, Bonds. 
ettHcoupons payable in 

London) Nart bargains Ic»*»«»t1 

GroeenflOngdom et)W PuMe Works Sag Lr. 

<d 1928(A8ad) - 585 (2tmo87) 
AmstartfBm-Ronardam Bank NV9»% Nts 
1993 - £97% (24N087) 

ASOA-MR Grouo PLC4W% Cnv Bdl 
2002(BrinOOCMX5000) - *107% 8 K 
(25N087) 

AuatrabKComrnonwaatth oQ10%% Bda 1997 

-£100 Mr 

BP Capita! BV8H% Old Nts 1998 - 5100K* 
Banqua NattatuA Da PakM kts 1998 
(BrCSOOO) - £96% (23N087) 

10% Nts 1904 - £100% t»MoB7) 

BSM Crnsa Mdusartes PLC8%% Subord Cm 
Bds 2002 - £87418 (2311097) 

Burton Group PLC4K% Cnv Bda 2001 
(8r£1 000&5000) -£1M(20NoS7) 

DfK> PLC8W% Subord Cnv Bds 2002 — *90 
(20N087) 

Chons Group (Capital) PLC6%% Cm Otd 
Bda 2002 (Br£5000&50000) - £81%# 

Oran) Metropolitan PLCB%% Sutxvd Cm 
Bds 2002 (Br£5000) - £78% (23No87) 
Hkadown HMga PLC4K% Cnv Bda 2002 - 

£82 (2ONO07J 

memaduik Bank lor Rae a Dml0K% Nts 
1999 (BltSOOO) - £103% % (Z3N087) • 

tnmstora m industry Wl BViWQbl Ms 
1983(Br£SOOO) -£101% (23No87) 

Land SaewNMs PLCG«% Cnv Bds 2002 - 
£957(2314087) 

Laamo North Saa PLC9%% Om Bda 1990 - 

5103.137% (23N087) 

Leeds Pannanant BukSnq BodaarO%% Wa 
1902 - £97 H (20NO97) 

NaMonat Wa a n inaui Bark PLOW Past 
NU 1992 - £97% (25NOB7) 

Paanon Piczara Cpn Bds 

1998(BrClOOOMQOOy - £88% (23Mo87) 
PnAankaFk»noaBVWUbeidBds2gn.- - 

(BrtSOOOAIOOOO^ -(91 (23No87) 
OoalMK(Prt)v«noaot)14%% Mu 1989 - 
£105% (20No87) 

Redland Fbunce PLC Zara Cpn Nts 1992 - 

Salmbury(J) PUC1W% Nia 1903 (BrCBOdQ 
- £103% (34N087) 

Tasoo PLC4% Cnv Bdk ZD0e(Bi£i0OO8S0O(9 
-KIOSK Et 7(23NaB7) 
UttnmarPLCO%CmBdB20Q2 -£97% % 
(2DN087) 


Sterling Issues by 

Overseas Borrowers 

Nfttrf bargains fciaudkMP 

AimneanBmnda lnel£%% Um Ln Stk 2000 
-£112K 

Amanean Metical bnamatlonal Inc9%% Una 
Ln Sk 2011 -E88pOHo87) 

Aslan Oavatapmam Bsnk10%% Ln Stk 
3009(Rag) - £101 % % (2SNo87) 
AustrafiafCommonweakh ol)9%% In 8k 
2OT2(Rag) - E93* (23No87) . . 

9K% Ln 3Bc20l2(Br) -ES3C&NOB7) 
ii%% LnSk 20i5<Reg) -£103% *%■ 

Bank of Greece 10%% Ln SBC 20l0(RagS - 
£M% (24N087) 

10%% Ln Stk 2010(Br) - £94% (MNo87) 
Caissa Naflonata Das AutoroutealW Old Ln 
S* 2006 - £148% 

Cigna Oversea* Ftanoe NV13% Uns La 88c 
2008 - £1 16% 7% (24Mo87) 

Cnsdif Foncur Da Ranca 
-£102% %.(20No87) 
10U%G«13acUi5k2011.12:l3.14(BD - 
£103% {20No87) 

14%% Gal Ln Stk 2007]Rafl) - £136% % ■ 

% 

Denmarl^Klngdoa of) 13% La Sk 2005 - 
£118% 

Ekwridw de France 13%% Otd Ln Stk 
2006fRag) -Cl 19% 

11%% Gtd Sac Ln S* 2tXSrt3(Heg) - 
ET13S 

European Im e m mant Bank 9% Ln Stk 2001 
(Rag) - £92% % % % K 
lO%%LnBtk2004(Rag) -£102%. m % 
11% Ln Sdc 2002(nag) - £100 (20No67) 
FMandIRepuDBo ol)llh% Ln Stk 2009pAg) 
-£110 «• X 

Hyaro-Ouabec12JS% Ln BBt 2D1S - £120% 
% % 

18% Ln Stk 2011 - £137 7 % % * 
kmr-American Dovatoptnant Bank9%% Ln 
Stk 2015 - £98 % % 

hamaterul Bat* lor Rac 1 Dav»»% Ln Stk 
SOKXRag) - £96% **■ 

113% Ln Slk 2003 - Eli 1%. (2SNo87) 
kaiandi2%% Ui Sk 2008(Ragt - £114% 

New Zealand II %%3tk 2008 (fer £5000)- 
£107% 7.(2SNo87) 

11K% Stk 20l«(Rag) - £109% % *%. 
Nora SeottafProwfeic* ot)11%% In Stk 2019 
-£111%(S4No87) 

16%% Ln Stk 2011 - £151% % 
PonugaXRap ol)9% La Stk 20lS(Rag) - 
C86H (£4No67) 

Province da Quabec1Z%% Ln Stk 2020 - 
£115% % % 

Spaai< Kingdom of) 11%% Ln Sk 20l0(Reg) - 

£iiwe 

Suadanif&ngdom oW%% Ln Stk 2OM(na0 
-£95% 

11% Ln Sk 2012ffM - £107 <28No07) 
133% Ln Sk 20i@£HegO - £127% 

(2S*to87) 

Urued Mmdcan Stama1B%% Ln 9k 
2008(Rag) - £100 


(24NO07) 

11 %% Deb 8k 2010 - £100%. 9% 
(23N087) 

Statute 5 Ne ucaa da Brawerfaa PLC7K% 
Cum Prf £1 -72(23No87) 

7% Cm Cun M El - 131 2 3 
Seagram DAWm PLC 12%% Dab 8k 2012 
-El 13% 

Thanan LdlOK% Dab Sk 91/96 - £101 
(24No87) 

VkK Group PLC7% cun Prf £1 -87 
9675% Dte Stk 2015 - £93 (20NO87) 
1T%% Deb Slk 2010 -£110 
Mknay.Mann 6 Truman HMga PIC4%% Rad 
Dab 9k 8893 - £80 (3<No87) 

12%% Rad Dab Sk 2008 - £115% % 

6% Una Ln Stk 00/95 -899# 

WMbroad 8 Co PLCB% 3m Cum Prf Stk £1 
-50 (25N067I 

«»% Rad Dab 9k 96*1 - £99 93 
(24N087) 

7% Rad Dab Sk 89/98 - £06% (24No87) 
TX% Rad Dte Stk 6944 - £91 % (34N087) 
7%% Una Ln Sk 86/91 - OS 
7%% Una Ln Stk 95/99 - £84% 

10M% Uns Ln Sk 2000105 - £103 
(23NOB7) 

5%% ind Una Ln Sk - £49* 

Wht tt iraa d kwaatm awt Co PLCOrd 25p - 
275# 


Registered Housing 
Associations 

No. ot bargain* Indudad 3 

Monti Housing Aasochdcn LdH% Qtd La 
Sk 2037 -198% 93% 03% 
zero Cp» LnBtfc 2019 - 625 (3«No 97 ) 
ZaroCpnLn Stk 2027- 340 (34N067) 


Commercial, Industrial, etc 

Wg of ougainvkichoagpiag . . 

-A)Un«dg*WX>4J%CuiWl»rf£1-S5 
AECI LdOMbCun' Prf M2 "85 
AOAAkmbOhgNon n a telc lad Sanaa TT 
BttS-S23£(24No87) 

ABB Tl a wra i PLC52% Cnv Prf £1-367 
AMEC PU>15% Una Ln Stk 1992 - £114% % 
(23N097) 

Airflow Sbauntna* PLC10% Cite Prt £1 - 
100(2SNo87) 

Aka PLCOrd lOp -82 576 
AtsrfgM & WBaorf Ld7K% DabSk 66190 - 
£83 %• 

9% Dab Sk 97/92 - £90W (231*067) 

Alcan AlumMun LdCtn 8hs at Npv - 

£l4%k 

Aaiad Trnm Companies PLC10% Cny 
Sikord Una Ln Sk 1393 -£230 
Amarf PLC8% CunOw Rad Prl £1 -113 
(24No87) 

AmaUcan Brand* incShs of Com Sk 59.12* 

- £24% (2Wto67) 

AppMrad Hldga PLCOrd IOp-129* 

Amyl Group PLCWarranta to SUb for Old - 
2^0(2514087) 

AIM MuaWas PLCOid 25p - 73 
Aaatxktad Brush Foods KC5%% Una In 
Sk 37/2002 60o - 33 (3GNo97) 

Awodatad Badrfak I m k umi a a Ld6«% Dab 
Sk 36/91 -£91(201087) 

/llOT Ul la hnra PLC7%% Uns Ln Stk 


CoutaiJUi PLC7%% Dob Sk 89194 - £90* 
6M% Una Ln Sk 94/98 - £82 
7%% Una Ln Stk 94/96 - £86% 7 
7%% Una Ln Stk 2000/05 - £79 
Coonauus doming Ld6%% Dab Sk 84/89 - 
£96% £4ito87) . 

Onada Marnaflonal PLC&W Cum M £1 - 

86(2314087) 

C nm aMe^Hit^a PLC6%% Cm Una Ln Sk 

0RGPLC7%% una InSft 86191 -£91% 
DalgBtyPLC4S5% Cura PIT £1 -85 
Davirn A MatcaHa PLC*A-(Noa.VKM lOp - 
70(34No87) 

Oabanheras PLCC 
£83% 

7%% 2nd Dab Sk 91/96 - £96% {23N067) 
8%% Uns Ln Sk 86/91 - £80* 

Date Group PLC7%% Dab Slk 88/90 - 
£91 K* 

10%% Dab Sk 96/99 -E99K* 

Dancora PLC8J5% Cun Cnv Rad Prf £1 - 
100B3NO87) 

Daatwttar BmatHUgN PLCSJZSK Cum Prt 

Dtckia(Jam«a)&Co<Drop ForgingaJPLCOrd 
2Sp — 70% 

Domnon imamadontf Group PLCWlMronts 
to cub for Ord - 7 
Dow Chemical GoCom Sk S£50 - 
£453817*683* 

EMAP PLCOrd 2Sp - 183 7% 9 
BEoMB.) HjC 7% Cnv Cun Red Prt £1 -100 
ByteMmbMon) PLCCM 2Sp - 850 
(20No87) 

Bnofah Ctdna Claw PLC7% Urn Ln 8k 
88/2003 - £78* 

Ei^Mi Bsctric Co Lxf7% Dd) S9t 86/BI - 

European Home Pmfcxte Pl£6%% Cura 
Rad Prf 200MS £1 - 103% (23No87) 

5H% Cnv Cum Rad Prf 200671 1 £1 -86% 
(2SNo87) 

Evarad HoMngsPLC 3^5% Cura Rf£1 -49 
Exm Group PLC10K% Cun Prf Cf - 133 
(2SNo67) 

Farnhara PLC12JS%CumPrf £1 -130 
(25N087) 

Finlay(JamBa)PLCA2% Cun 2nd PH Sk £1 
-54(24(4087) 

Hsona PLC5%% Una Ln 8k 2004/00 - 

BB2H* 

Fbkaa Group PLCOrd Sp - 45 (2SN087) 
Fbm*HMrPLC11%CumPrf£1 -135 
(24N087) 

Pormun t Mann PLCOrd Sk El - £363 7 
(2SNo87) 

manky HoMa PLC4%%CmCum Rad Prf 
£1 -80 

9% Cm Cun Rad Pit £1 -100 6 
FUura HMga PLCOrd 2Bp - 300 GOttaST) 

GS HamatteM PLC10% Una Ln Sk 87/92 
-eas(2SNo87) 

GKN (Umwd Kingdom) PLCMM% GM DSD 

SkDMS - £W9 

Ganaro) SecMc Co PLC7%% Una Ln Sk 
87/92 -f90(25No87) 

7%% Uns Ln Sk 88/93 - £02 (23No67) 
Genera/ Motors CorpCom Sk Si 2/3 - 
366%* 

Ganstnar HUga PLC10% Cm Una Ln Sk 
90/95 -£109 

Gamar Group PLCOid lOp - 196p5Mo87) 
Bkas Glovar Group PLC6%% Cun Cm Rad 
Prf 2000 £1-92 

Ghnwad MunaaoM PLC10N% Urn Ln Sk 
94/99 - £101% (20N087) 

Qooda/M PLCOd lOp - 36 (24N087) 

Grand Maaopakan PLC4%% Cum Prf £1 - 
48{23No87) 

8% Cun Prf £1 -489%(MNo07) 


Pmaan PLC5875% Una LnSk 38/33- 
£82* 

846% Uns Ln 8k 6*93 - £90 pDNo87) 
8£2G% Uns Ln Sk 83*3 - £88 (24(4087) 

Pantos PLCDM Otd 20p - 180 P0NO87) 

4K% Cum Prf £1 -38(2414087) 

PNoom PLC8%CumCrw Rad Prin -130 
Plaaaay-CO PlC7%% Dab Sk 92/97 - (84* 
Pony Pack Hamadorai PLC8% Cun Cm 
Red Prf £1 -80 6(20No87) 

Rxtend KfKcflngs LdOrd 5ZZUM) - 10 
O3N087) 

Power icraen wa msM onai PLGlWCm 13a 
Ln Slk 1335 - £700* 

Preaaw Koidbui PLC10W Cum PM n - 
110(2SNo 87T 

Queen* Moat Huu PLC10%% MMg 
. Deb Sk 2020 - £98 (23N087) 
OJdtfH.*J.) Group PLC1W Cun Prf £1 - 
100 (26N087) 

REAtfldgs PLC12% cm um Ln Sk 2000 

Rjn Nabbco IncShs of Com Sk NPV - 
550% 51% SI .2 51% 51% 51% 62 
(24N067) 

RPK Ld3K% Dab Stk 83/88 - £97% 

(34N067) 

4%% Uns Ln Sk 2004/08 - £40 

9% l/ns LnSk 99/2004 —£99 90 

Raek-cnubb Ld8%« Una Ln 8k 87(92 - 
£93 (2SNoB7) 

Rank O tgaii aa Uu ii PLC6%% Cum Prt £1 - 
66 

0% Una Ln Sk 83/88 - £94% (20NO67) 
iDh% Uns Ln Sk 97/2002 - £100% 


Bn**. 6 Commcnweaki Mdoa PLC4J5% 
Cm Rad Prf £1 -73 » 

Compagnia Baraka 5-A.FFiOdKBr) - 
£4092)1283* 409412727* 410477222* 
410976296*410477941*411467491* 
411.0578* 

Edinburgh Finandal Trust PLC warrants to 
mb (or On) - 18 CMNo97) 

Expknnon Co PLCOrd Slk 9p - 180 
(24N0B7) 

Parguson^kmeDHUgs PLCOrd tflp - 118* 
Firai National Rnanco Corp PLC1W Subord 
UwLnSk 1892 - £86 (23N087) 

Qoura Far East tMestnanls LdB41 - 
3049 (23N087) 

Govte Mite Income G* Fund LdPtg Rod Prf 

Ip - 43.4 (20No87) 

Htecroft uiiw u iia m Trust PLCOrd 2Sp - 
195(2614087) 

IS Global Finds LdPig Rad Prf 
304i(Stsrtng Sha) - £1542 (20No67) 

I Rad W 5001 (Managed Sha) - £1642 


•nchcapa PLC8K% Cun Rad Plf 9kB2 £1 - 
91% 

8% uns Ln Sk 87/90 - £83% (26Ne87> 
(ndewandent h m a u i ia Co PLC Warrants to 
■ub tar Qtd -12* 

7% Cum Plf Sk - £66 (2SN087) 
tataroaMowa l Cky HMga PLC8%% Cnv Cun 
Rad PrfEi -107 ^No87) 

JF Padflc warrant Co SA On) 12 (Brf - £28 


Ranks Hovla McOougeS PLC6% Oun 1st Prf 
£i -SB 
6K%Uns LnJ 
6%% Uns Ln Sk 83/88 —(97 
8%% Una Ln Sk 91/95 - £93 
RattflRa(Groat Bridge) PLCB% Cun 1 at Prf 
£1 - 53%t (20NO87) 

8% Cum 2nd Prf £1 -75KJ* 

RacfcH & Coiman PLC5/% Cum Prf £1 -40 
ffONoBT) 

Record Holdings PLCOrd 5p - 62% 

10% Cun Rad PrfEi - 109 % C23NoB7) 
Head maar iu don a i PLC6% Dab Sk 8308 - 
£98 

7%% Deb Stk 87/92 - £90 
7%% Deb Sk 90/95 - £88 99 % % 


Prf 52 (Br) - CIS [25N087) 
Kovaa-Europe Fund LdSha 50.10 - £1044 
Sha(1DR U Br) 30.10 - 30* 0* 


Rodware Gruo PLC6% Uns Ln SkSGGS - 
£30 

Rcda-Royea PLCOrd 2Dp - 105% 7 7 8 8 % 
% 99 % 10 10 1 12 
Ropnar PLC11 »% CUn PM £1 - 133 
Rawntraa PlCWUranis to sub tar Ord - 
£400 

9% 1st Cura PrfEi - 50 (24N087) 

7% 2nd Cun mn — S4(2 QNo67) 

7H% 3rd Cun Prf £1 -68%05No87) 
Ruberold PLC10%% Um Ln Sk 90196 - 
£100 

Rtnby Group PLC0% Um tn Sk 83/96 - 
£72(25/4087) 

7%% Una Ln Stk 93/96- £98 (2SN087) 
SantcW & SaateN CB PLCADR (3.-1) -120 K 
6% Cnv Una Ln Sk 2015 - £90 
Scapa Group PLC8% Uns Ln Sk 88/93 - 
£88(2SNa87) 

Steering AG6ba ol DM50,100 61000 (Cpn 
51) - DM4I7K 

l lnduaMa«PLC7%% Uo. 


Mines - Miscellaneous 

No. of natga/ns tnck/dafl20l 

Ante. unltedPLCCm Red Prf lOp _ 87* 
Bots wan a RST LdPUE - 55* 
ftjrygg^gnwnaja 8 PiC7%% uns Ln 
Sk 99SB04 - £77 (24fta87) 

Da Baers Conaowatad Mkns LdDfd 
R04S(Bt)(Cpn 80) -*11% CSNoST) 

BOJJ RMnglExpioiHafl Co PLCOrd lOp - 
330 

RTZ Corporation PLC6%% Uha Ln Sk BSM 
- £91 2% (23No87) 

%?n^ QwwMh “ urB ' 

Mines - South African 

NR of bargains tncfuCiBd73 

Coronation Syndcata LdR02S -361 
(20NO87) 

DAB kiva aan a n t s LoOrd B041 -275 

(24NOS7) 

General Wring Union Corpor a tion 34% Var 
Comp Cnv Cum Prf R040 - £8% (24No67) 
Labowa Plaktun Mines LdOnt R04I -87 

Ofl nr ol bergaina Inttedadl092 

Arao Energy PLCOrd KQ40 - 0042 043 p 
72 % 34 % 5 

BOM Hkfga PLCOrd 2%p - 8% B K 10 
3% Cm 2nd Uto Deb Stk 1989 - E41D 25 
(24N087) 

BrkMi Pterotaum Oo PLCNaw Old 25p (Pay 
PWLA-8n/88) -799 % 8060 JL 48 % 

43 j419 % % SO % 43 1 1 % 2 2 J238 
ADR (12:1) CPdy PU) - 817.198* 

Warrants to purchase AOS - 8745 

(24N087) 

9% Cura Old Prf £1 -85 
Burraah OB PLC8% Cun 1st Prf Sk £1 -66 
(204007) 

7%% CUn Rad Prf Sk £1 - 86% B K % 9 
8% Cun Prf Sk £1 - 73 
Catar Grow PLCOrd 50p -410 5 25 36 45 
603 

Conoco Ld7%% Gal Una Ln Sk 87/93 - £98 
%(20No87) 

8% G81 Una Ln Sk 87/94 - £34% 6% - 

(2014087) 

ELF UK PLC12X% Una Ln Stk 19B1(Rag) - 
£107* 

Enron Corp She of Cora Sk 310 - 838% 
(84No87) 

Grail Westam Raa o urc a a IncSha of Com 
8k NPV - 148 

Mobfl CorpShs td Com Sk 32 - £20% 
(2BN087) 

OccktanM Patrolaum Corp Corn Sha 3040 - 
926%* 

Shei TranspcxlATradVigCo PLCOrd Sha (Brf 
2Sp (Cpn 17Q - 980 (24No87) 

SH% 1st Prt(Cum)£1 - 50 CSNa87) 


South Skftardtete WManraw Co 
-£98(24(4087) 

34%(Fmly 5%)Cona Prf Stk - £30 
(23NOB7) 

Suuertand 3 South EhMda Wuar Co 
-£40C23No87) 

7% RM Deb Stk 88/88 - £95 
7%% Rad Dab Sk 91/93 - £88% L 
Sullen DOME! WMarC08.15K(Fmta4Kl 
Sk - E46(23No87) 

TancMno Hundred WMamorka Co44«(Frah 
6%)Prt£T0 -030(2314087) 

Ytork MMarwoTka Co34%(FMr 5%XMn 
Dhr)CM8k~£l23(24Notf) 


l AuB3>2 
Com. Pnid g ati 4» 


D eH optnen t Bark of SkgatR SML7 
Dmril7(20r" 


17(2001) 

Da Pont £46.92 
Emm OU 6 Cat AS0402 
“ “7 Sllvtr Mhas 09.489 


Far tits Hotels & EntcrulaiiMt 7^ (2001) 
FrteSlilf Cte)64MMUMB*al4lal&i 


W5 


USM Appendix 

Nr of borgakw hdudaOBSS 


i Agrieukural 
Ln Stk 94/99 - £84% 


Soar. FUG 12%% Cum f^EI^IIZ (24No87) 
7X% Una Ln Sk 92/97 - 286% (20No87) 
SaarsAMbuck & Co Sha of Com 8k 30.75 - 
£19.95 (24No87) 

Stager GoCom Sk 310 - £30% 0S4NO87) 

600 Group PLC3.1&% Cum Prf £1 -42% 
(20No87) 

Smte 6 Naptew Assodatad Cos PLC5%% 
Cun Prl £1 - 53H* 

Gnltn(w>L)6 SonfHtdgs) PLC'S’Oid lOp - 
62 (24NoB7) 

3K% Cun Rid PrfEi -47(S5NoB7) 

5K% Rad Una Ln Sdk - £46 (2SNo87) 
Smtea Incfuttrles PLC1 1X% Dab 9k 
95/2000 - £102(23*087) 

Southend Sttdten PLC 

-80 

Spam Ld7%% Deb Sk 84AB - ES6% 
(2411087) 

Spang Htdga PLC Cnv Cum Rod Prf2flp -80 
SqUbb CorpCon Sk 31 -£3442 
Stavehy taduatrtas PLC7%% Um Ln 
501(86/91) - £80 (23NO07) 

Stead & Simpson PLCOrd 25p - 800 
(24No87) 

SwvanaUi>Jft Co IncShs of Com 8k 3740 

- £15% (24No67) 

6*orteouaa PLC9% Cm Uns Ln Stk 1992 - 
£183 

i PLCWkitette te ate for 


814% CUn Prf £f -60% (24MoS7) 

«% UlMeLn Sk 91/96 - *96 QaNoB7) 
Gnat UMvomaf Storoa PLC8X%Um Ln i 


93/98 -r £86 (25No87) 
Haaan MeeLederf HBg£PtC 


U> Stk 


-- <M2dp -7j4 • 

876 

Hte D i ^ aarta9( H lilga) P tC6J6% Cun Prf 

Hataia PLC11% Own PrfEi - 125 (23No67) 
Hard Rock Mentaaorai PLCOrd a. -13440 
(29N087) 

Clan A (Rast VW Did & - 100 5 
(34N087) 

Hepwork Ceramic Htega PLC7%% OabSk 
88/93*- £901 


Gotenth Park 


£1 -E30 


i PLCOrd 6p -40% 2 
tUdtrfMMBfl PLC6% Cm Oun 
Red ftf £1 - 126* 

AukaaoMva Products PLG9% Cura Prf £1 - 
111 % 

Ayrat** Metal Products PLCOrd 2Sp -30 
(2414087) 

BJlT. kwaabnarta PLC10% Um La Sk 
90I9S - £96 (23Mo87) 

10%% Una Ut Me 9095 - 197 102 
BET PLC4K% 2nd Dob Stk - £41 (23No97) 
BIOC PLC5K% ted Com Prl 8k £l -49 
(20NO87) 

7% Dab 9k 85190 - £92 3% (20*to87) 
7%% Dab Sk BOOT - £88 |2SNo67) 

BOC Group PLC44W CUn PrfEi -60 

(24NoS7) 

12*% Uns Ln Stk 2012717 - £114% 
k&QJntamatkinal PLC12K% Om In Sk 
93/96 - £104 (2414067) 

O teoock fc aw na tional PLC 6% Cura Rf BBt 
£1 -55(20(4o87) 

BdtegCA) PLCTT Old lOp - 1523 

BaS*krPlJ37% Cum PrfEi -O%(2SN097) 
Banteey PLC Wa rr an t a lo ate tar Onl - 7 
BeazartOLXHklB^ PLC847% Cum Rad Prf 
£1 -103% 

8 %%CrtVUns Ln Sflc 2000 - £119 21 1 
(23N087) 

Beneon SBG PLCOid 10p - 61 8 
BtrmM Outeast PLC7%% llna Ln Sk 87/92 
-£89 

Bkratnghdm MM Group PLC8% Noia-Cua 
PrfEi - 50 (26/4007) 

Blackwood Hodge PLC W Una Ln Sk 86490 
- ES2(24N087) 

Btua Cinla tnduaMea PLCJ% Dab 8k B3A0 

9% Deb Sk 92/97 - £96 (24No87> 

10 *% Dab Sk 94/99 - Cl 02% 
i Co Sha of Com Stk 36 - £19% 


31450 (Cpn 51) — DM238 23BK 2HL86261 
294 

Hoactof Rnanca PLCM% Gte Dhs tn SK 

1900 - £90* 

House of Raaar PLC9X% Uha Ln Gk 93/99 
- £87 

Huttarprint Group PLC6%% Cm Cun Rad 
PTfEI -160 (2SNo67) 

Honktg Ataodated tadus&las PLC9%% Cnv 
UmUlSk08/0B-£ZM 
BA tataroM to nal PLCOid 5p -90% 5 
m. ta to nnaOor Totenoiogy PLCOrd lOp - 
' 756(294oS7) 

bnpetw Chanack (ndudriaa PLC5%% Uni 
Ln Sk 940004 - £87 
7%% Una Ln Stk 98*1 - £92 4 
8%% Um Ln Sk 88/93 - £95 % 
n%% Um Ln Sk 91*8 - £104% 

(23NOB7) 

kdarradkxwi Bus Mate CorpSha Cap Bk 
8145 - EB4%6 

Jbmaaom Chocolatea PLCOid lOp - 155 

Jo£mui?mif Bream PLC1T% Una Ln Sk 
93*8-992%* 

JtenataLMataiay PLC8% Cm Cum Prf £i - 
415 

Kataey loduahfea PLC11%% Cua Prf El - 
137% 8% (2BNo87) 

Kwmfcrg Motor Group PLC5%% Cum Prf El 

7% Cun Prt £1 - 64 9t (SSMoBT) 

Ladbroka Group PLC9% Gtd Um Ln Stk 
90*2 - £61 OSNnflT) 

LatagjJten) PLCOid *A* Non Vlg 25p - 

Lagm fate«Mae(lfldga) PLC5K% Deb Sk 

8% Dab Stk 93*8 - £8854* 

Lawte(JdtFi) PLCG% let Cura Rf Stk Cl -48 
LoMbfriohnJParinaraNp PLCGK Cum Rf Slk 
El -48 

7%% Cun Prf Stk £1 -B7(23Na87) 

Lewts’e tnveatmant Trust LdBM% Mtg Dab 
Stk 85/90 ~£8Qf20l4oB7) 

London kwarn a iio na l QnwpPLC10»% Um 
Ln Bdl 90/95 -296 (34No87) 

Loorho PLC9% 2nd Mtg Dab Stk 87*2 - 
_ EBS% (36KoB7) 

Lueaa induatrtes PLC10%% Um Ln Sk 
92*7 -El 01 K « % (24NO07) 

MXEteetrfc Group PLC 7%% Una Ln Sk 
88*1 -£934f24lio87) 

M.YXokfngs PLCDfd Old 100 - 60 


Ord - 85 (2SNo87) 

9»% Rad CUn M El - 100 (23N067) 
Sutar PLC HU Ord Sp - 170 
Si dra pol ra ^5SonaLfl63% Cun PrfEi - 

Symondk Enokteartag PLCOrd 5p - 38 
(2S/**7)‘ 

T 6 N PLC 9% Mg Dab 9k 87/92 -£B9 
(25N067) 

TDK CwporaHon Sha or Cam GklrfjiO - 
334%t V 682J77 674/62 710 730 
Tl Qrot* PLC5W l)W Ut SK 88196 r £30 
Tarmac PLGS%%tFieeof loeTa^Cup Prf 
£1 - 72% 7*4: CONdBT) 

Tata 8 Lyta PLC6%% Cun Rf Bk £1 - 00 
C5No87) 

7%% Una Ln Sk 86*0 - £91 

18%% Cm Una Ln S* 04*8 - £200 200 

(25N087) 

Tkytar Mkwdrow PLC7%% Um tn Sk 87*0 

-£B1 pONo87) 

TetflWaion Souta PLC 10% Subord Cm Una 
LnStk 1997 -£183(24*087) 

TWoa Kiga PLCWar ranta to ate lor Ord - 
23% 

9% Cun Prf Cl -101 

Tasco PLC4% una oaap Dtao Ln Bk 200B - 
e«7* psNoen 

Tex Hotdkwa PLCOrd lOp - 105 
Thomson Oraantaatkn PLC442%Cua 1st 
PrfEi - 63 (28No87) 

5JO% Cun Prf Et - 78 (23N087) 

THORN EM) PLCWarranta ® ate tor Ord - 
122(2814087) 

34% Cum Prf £1 - 42 (ZSNuBT) 

6% Uha Ln Sk 2004*9 - £56 OONo87| 
7*% Lktt Ln Sk 2004*9 - £7ipONo87) 
TBngfThoraas) PLC455% Corn Prf £1 -81 

K' OTOStk 85*0 - £94* 

8»% Una Ln Sk 89*4 - *04% 

Ttegv Jura Factory PLCOrd Sk El - 82 

TamktaKFJU PLC9%% Cm Itaa Ln Sk 
1004 - £H2 (MNo87) 

Tooai Group PLC5%0ua Prf El -45 7% 
(2SNo07) 

7%% Dab Sk 65*0 - £02 (28NO07) 

7V% Una Ut 0k 09HM - £92 

’ Houaa PLC9%% Una LnSk 


ndon 6 European Grow LdlOh% Uns Ln 
Sk 1993 — *94 (23No87) 

»«Mi Britannia Jersey Gk Fuvt LdPfg Rad 
Prl ip -2009 

Manaory Ofbhoro Stsrftag Truai $h» of 
NPVpjJLFun* - 107.7 (ZON087) 

Marcury E a l ac i ed Trust Sha NPV Gtabal 
Pun4Rat0 - C21A468 (24No87) 

Sha NPV European Fwd(ftog) - 31859 
(23No67) 

Mazztetaa CaptetetaG T» 2001 PLC Inc Sha 
£1-148 7 

NWC (houp PLCWarranta lo ate (or Sh. - 
82 

Practical investment Co PLCOrd lOp - 85 7 
(24NOS7) 

RBC Iraamational Capital Rrnd LdPtg Rad 
Prf 30.01 - 33648 (20/4087) 

RBC North American Fund LdPn Rad Prt 
SO.DI -39.98 (20NO87) 

Htewchlte^MpB PLCWarranta to ate for 

Royal Trost Govaramsnt Sacs Raid LdPte 
Rad Prf ip -75.1 

Saoond Mariiat kmastmantOo PLC2M%Cnv 
Uns Ln Sk 1B94 - £85 (28No87) 

Smith New Court PLCWarranta to ate lor 
Ord -60 (Z3No87) 

1 2% Subord Una Ln 8k 2001 -£97% 

(EONoST) 

Strata Imastmanta PLCWarranta to ate tar 

Ord -25 

Target Inter na tio na l Bond Fund LdPtg Rad PTOpBfty Ng of bwgtktt tackxtad470 

Tltmum JwHmJ^teL^apiM Sha S0.10 - L^ Froptwaa PLC6%% Cm Rte 

8%% Cnv Uns Ln Stk 1999 - £175 
Asda Propony Mdgs PLC 10 6/19% 1st Mtg 
Dab Sk 2011 - £98% (2QNo87) 

Britannia Group PLCOrd Bp - 110 5 
Brixton Estate PIC940% 1st Mtg Dob Slk 
2028 -£9l% (20NoB7) 

Capita 6 CounUas PLC6*% Cm RT £1 -85 
B%% UlIBgPebStfc 20Z7eE2SRI-30nV87} 
- £ 22 % 

B*% Um Ln S« 91*6 - £90 6 8% 
(24(4087) 

Chartwood AOanea Hldgs Ld7%% um Ln 
8tk50p -32% (20No87) 

Chaatarflalfl Proparttas PLCR25%(NM) Cm 
Cun PrfEi -83k 

CokiunfEAteObwastnunts LdB%% la! Ug 
OabSk 88*1 - £83 (20No87) 

8% Uns Ln Sk 01*8 - £80 (24No87) 

Doras Estate* PLC 10%% 1st Mtg Dab Sk 
2018 —£03% 4 12414007) 

Estates Property Investment Co PLC1D% 1st 
Mtg DabSk 2011 -EB3% 

Ewart New Northern PLC8%% Um Ln Sk 
BOBS- £82(241(067) 

Greet Portland Estate* PLC 95% 1st Mia 
OabSk 2018 -£91% 

Graon Property Co PLCOrd KB45 - 1£1 
<20NaS7) 

1285% Una Ln Slk 90*2 - £103% S 
(20NoB7) 

Oteteall Proparty Co PLC6%« 1st Mta Dte 
Sk 90*5 - £85% (23No87) 

Haranwraon Prop tnvAOev Corp PLCOid 23p 
-446(2514087) 

Haaiamera Estates PLC 10%% latMtgDeb 
Sk 98/2003 - £97% 

10%% 1st Mtg DabSk 2016 - £100 
(20NO07) 

Halkal Bar PLC64B% Ow CUn Rad Rf 
2012 El -64% 5 

Land Securities PL£B% 1st Mig Dte Stk 
88*3 - £86% (23NO07) 

7M% 1st Mtg Deb Sk 91*6 - 190 
(23N087) 

9% 1st Mu Dte Sk 960001 -£98 
10% 1« Mg Dab 9k 2025 - £081% 

8%% Una Ln Sk 82*7 - £B1 % « 

London Shop PLC10% 1 at (hfl Dob 8k 2028 
-194% (25*4087) 

MEPC PLC io%% latMteDteSkSOM - 
£104* % (294037) 

12% latMig DabSk 2017 -£113% 

8% Una Ln Sk 2000*5 - £83 
6K% Cm Itaa Ui 9k 65*000 - £129 
Marfn International ProporfleaLdCM25p - 
120 (2SNo87) 

Cun Rad Cnv Prf £1 -100 
Puateay Property Cora PLC95K tat Mig 
Dob Sk 2015 - £9ST (24(4087) 

Raol Hkigs PLCS.25% (Natj cm CUn 
Non-Vtg Prf £1 - 100 

9%% fat Mtg Dab Bk 201 1 - £93% 

Power Corporation PLCOrd K0.10-BSL85 
e80% CSNoST) 

Bnoahaugh Graycow Estates PLCT11% let 
Mtg Dab Sk 2014 - £103% % 

Shaftesbury PLCNtw Ord Cl 
(FpflA-27ni/87) - 119 (23610971 
'SSfute Eataiaa PU37%% Ut Dte Sk 35/90 
- E98K (24/4087) 

Town A CHy Roporuaa Ld&% Una Ln 8k 
97*9 - £80 (20NO87) 

Town Centra SecurMas PLC 9% Cm Una Ln 
Gk 96/2000 - £135 (SDN087) 
watas City at London Properties PLCOid 
2Sp - 140 5 6 7 8 50 50 


10X% Uns Ln Sk 2001*8 - C100 
O4N087) 

Tranwood Qnxp PLCWwnwta to sub tor 
CM -28 30 

Tftatea PLC20% Cun Prf 2Sp - 47 eSMoST) 
Trinity International Hldga PLCOnflLkn 
VtgJSRSOp -B10B0(26No87) 

Trudhouaa Forte PLCtMwrants to ate tar 

Old —47 (24NO07) 

848% Ik Mtg Deb Stk 85*0 - £38% 
105% Mag Dab Sk 91*6 - £102% 


BooqHetxy) A Sana PLCCOm Rf(44%)£1 - 
52(20No4fn 

Boots Co RJt?7*% Um Ln 8k 88/93- 


Banks and Discount 
Companies 

No. ot baigataa WctodedBIS 

Ans b ateer(Hanry)HBga PtCt% Cnv Subord 
Ln Sk 1898 - E9S(2SNo87) 

Barnt of XatandCOmamor A Co of)7% Ln 8k 
8691 - £70 (24/4087) 

Borders Bank PLC7*%Unt Cap LnSfc ' 
86*1 -192 

3X% Utts Cap LnSk 86*5- £93% 4% 

% 

12% Uns Cap Lo Sk 2010 - £112% % % 
(25N0B7) 

16% Uns (tap LnSk 2002/07 -£138% 
(25N067) 

» PU»% Cum 2nd Rf £1 - 107 


Bowater tadutefat PLC44B% Cm PrfEi - 
58 

ka ati waito Oroup PLCOrd £1 - 205 10 

Cnv Prf SOp - 34 94 (23t4oB7t 

Srtdon PLC 6% Cunt Prf BOp -31 
10 %% Dab Sk 91/BS - £90 (EONoBT) 
Brute Aaway* PLCOrd 25p - 140 40 % 1 3 

™S2mS& 


_ IDteBfc 

0MH- £100 (26/4087) 

Brtdah-Atnarfcan Tobacco On Ld0% 2nd 
Own Prf Sk £1 -54(84*1087) 

British REigs Griup PLC&5% Cm Rad PM 

£5% Cm Rad Prf £1 (Fb/PAL-1fi/12f87j - 
0O7(2te4aB7) 

nf%M« Ote Sk 94*8^£8S* 04No<7) 
SMi 9toa Corp HUgs PLC«%% Cum 3nl 


RfO-M ««*** 

7% Una Ui Sk 85*0 - £90 1 % 3 

OONoST) „ , 

Brown A Jackson PLCOrd SOp - 45 7 
10.75% 1st Cum Rf£1 - 145 7 (ZONoBT) 
Brown Bovte Kant PLM»% Cuat M Bk El 


Midland Bank PLC7%% Steord Uaa Ln Sk 
83/03 - £88% 

1W% Steord Una ln8kMM-C105% 
14% SuMrd Unt LnSk 2002*7 -£123% 
«%K 

National Auttrafla Bark LdOrd Sha SA 1 - 

£1%^ 

National Westmawtu Bar* PLC7% CUP Rf 
£1 -638 

9% SobOrtl Ute LA Sk 1 993 - ISB% 9% 
12*A% $teord lira L»8k 2004 - 
£!14%* 

Etannard Charwad PLC12%% Bteerd Una 
Ln Sk 2002*7 - £111% % % % 




5%% Sao LnSk 2003- 


Br ow tfl Jo nn ) I 
MBit* 

LF^ A Co PLCOid 9k 5 p - 46 SB 


Buflara PLC 8% Cum 

Bute PLC7%Cm Un* Ln Sk 05*7 -£102 
Bwndtea Imaatirami PLC1S% Una Ui Bk 

2007/12 -£1l3 (23No87) 

BbflM Ok* PLCWte to Sub lor Old 9« 
1991 -51 

8% Una Ln &k 98/2003 - £73% (24f4oS7) 
8% Cm Um LnSk 1990/2001 -£112% 3 
Ci(Mus8latePLC7%CnvCumPrf2f - 
190(24*n87) 


McCarthy A Stone PLC 7% Cm Una Ln Sk 
08*4 -El 73 (2414087) 

Magnet PLC 546% Rad Cum Prf El -75 
(SWtaST) 

5425% Cm cun Rad Rf 2012 Et -74% 
5% % 

Mwtay PLC1l%% Dte 8k 2000 - El 10% 

1 % 

Maraitete Haiitex PLCtO% Cun Rf El -115 
MarteeaUohn) PLC9% Cmt Prf El -118% 

MMteJi>LCWterante to ate for Ote - 
57M(23No87) 

10M% Una Ln Sk 92*7 - E103* 
Momamo CoCcm 8k 32 - S89 lO 3709E 
(20No87) 

Mora CFUiaa PLC10% 2nd Com Prf Cl - 
110124(4087) 

Morgan Cructeta Co PLC Ralund a bla Dap 
Um teflte tar Ote -£80(24*1037) 
NCR CdrpCom SktS -384%* 

Nte & Spenow Hidga PLCDfd Ord lOp - 12 
(2314087) 

13% Dab Sk 00*6 - CIOTte 
Nawanha PLC8U% Cum PrfEi -73 
Nt w ra wi taduwrtaa PLC 10% Cum Prf 
£1 (Restricted fllgMs) - 100 (25*toff7) 

Next PLC7%*AT CUn Prf £1 -606 (24NO07) 
WW Com Prf SOp -45 (24N087) 

HOMO 6 Lund PL£8% Otv Cum RM Rf £1 
- 110 * 

Nabo Group PLCOrd lOp - 180 (28NoB7) 
llonima Group PLCB%% cnv Una LnSk 
99/04 - £100 (24/4087) 

Norte Data ASGte -B-ptan VU M<20 - 
£7.723605 J9S443 3 13% D6B3% DK90 
North MUand C&natrnaton PLCOrd lOp - 
138 

Northarn D i teo a rtnn ww tea PtC3% CUm 
Rad Prl £1-38% %(24No67) 

.6475% Cum Prl £1 -7a(20No67) 

NkfM Opn PLC5K% Cm Cun Rid Prf 
20020-82(24*4087) 
O^t^^FMwai0PLCOte25p-34S 

pte CupormonSu Of Corn Bk 3Q4S - 
S22M»23te 

Parker Knoi PLCOrd 25p - 800 
44% Cum Prf £1 -51 (294037) 


1.1% Uos Ut Sat 95*000 - £92 (24No67) 
Ute»PLC5«% DabSk 83*8- *98% 
7M% Dab 9k 06*1 -E91 
B%% Um Ln Bk 91*6 - £78# 

UnNevor PU37% 1st Cum Prf 9k Et - 63 

SEE, LnSk 01/2006- £57 
7»% Uns Ln Sk 01/2008 - £84% 8 0 K 
(Jnaeusr NV7% Cun Prf 8ub-Sha Cart 
NATR 12-50 (23NOB7) 

Itatan taumaggrtW to PLC6% Cuat Plf 8k 
£1 - 55% (23No87) 

7% Cun Prf Sk £1 -83 
LMsya CorpCora Sk 35 - £16% (23No87) 
United BiaateMdga) PLCWenante to sub 

taroroji^^inste 

LMtad Sctenaflc Hktoa PLC&8% 
CnvCumNVHadPrftl Fp/PAL-1 1/12*7) - 
77% 8 9 80% 1 % % 

Upton(EJA Sons PLCOrd 25p -70 
V4ntona Vtyate PLC*5S%CunPrlE1 -56 
5£% Cian Prf £1 -72 
R4% DabSk 80*4 -£S7(23No87) 
Vkhara PLC5% Cunflax Raa Tto 30p(Pr{ 
Sk £1 -08 

-149% 

I PLCOrd lOp- 29 
1 1 5% Cum Prf £1 - 92 (2514087) 

WCRS Group PLC5B% Cnv Cura Rad Rf 
1999 IDp -98B(24NoS7) 

I PLCB% Cun Prf £1 -70 
i PLCOrd Bp - 100 
PLCOrd 5p^40 5 

Ol Com 9k 01 - 

PLCOrd ItCOXE one 
Q-64X87 
PLCOid 28p- 300 
PLC Wterarta to ate tar CM 

7%% Cm CUm Rf El -103 
7%% DabSk 87/92 -£8B 
MMscroft PLC4.1% Cun PrfEi - 59 
(2514087) 



Sk 

tmshaw Saeuflles PLCOrd Sp -234 B 
Xerox CorpCora Sk 31 -S6e% 

York Trtear Htafta PLC10% Cun Prf« - 
128 

Yortohim Oknleato PLC10K Dte Bk M*3 

-£97% 3 


Financial Trusts, Land, ate 

Nr of bargains hdudad295 

American Express CoCom S020 - $24% 
Armor Tiuh FLC 10%% Urn Ln Sk 9U9G - 


32143 (Z4No07) 

Va/ua 6 income That PLC Warrants 88*4 to 
sub for Ord - 13 (25(4087) 

Insurance 

Nr Of bargains jndudad4B9 

Rec ta*— k M Insurance OfBta PLC 10% Rad 
2nd Cum Prf £1 - 121 
Ganaral Acc FtaaAUto Assc Cop PLC7%% 
Uns Ln Stk 87*2 - £88 (23No87) 

7%% Uns Ut Sk 92*7 - £84%# 

Quatean RoyaiExchanga AsauranoaPLC7% 
Cum Rad m£l -86% 

7% Uns Ln Sk 80*1 - £90# 

Paul Group RX6K% Prl £1 -84 
Sconah Lila Aaouutoa Co7%% urn Ln Sk 
87/2002 - £72 5 80 (25N087) 

Investment Trusts 

NR ol bugataa tactadadteg 

Aisa inv estm ent Trust PLC5% Cua Prf 8k 

- £50 (25N087) 

Atlsntia Assets Thwt PLCWarranta to sub for 
Ord - It 

Austraia knastmant Trust PLCA Warrants to 
ate tor Ord -21(2GNo87) 

Brtl la GHfard Japan Tnte PLC Warrants to 
Wb tar Ote - 230 04NoB7) 

Baafe Omani SNn Mppon PLCWarranta to 
sub tor Ord -20 IpONoST) 

Brittsfa Aaoats Truat PLC4%% Prf Stk(Cun) 

- £41 (24(4087) 

•A* 5% Prf SteCunfl - £48 04NaS7) 

BrMsti Emphn Sac 6 General Trust 10%% 
OabSk 2011 - £98 9 (23(4087) 

Britten Kkfcwy Patent Aaa tav TstOrd £1 - 
190(3414007) 

CS.C.bweatmM Tlrust PLCOid 25p - 215 
(2SNOR7) 

Capital O aarto q Trua PLCOrd 28p - 108 
(2414087) 

PLC Ord £1 — 9O(20No87) 

Darby Thai RC Warranto to aub for Cap 
StiB — 102 (23N087) - - 

Dritltan Cboacadamf trim PICa5% Con 

Prt 0k - £48 (2GN087) 

7»% Cm Una La S» 1908 - £405 
(26*40*7) 

EFM Dragon Timt PLCShs arilh 
WananflFp/LA-1 1 n 2*7) - 5*. % % 7 
EOnbugn Amutcui Asaawlrim PLC4%% 

Prf SkfCum) - £41 (24No67) 

Binburgh tavmraan Trim PU33LBB% CUd 
PM 8k -£SO(04Na67) 

11%% Deb Sk 20M - £109%# 

Erteteh A fntomteorte Trim PLC 10%% Dab 
ESC0O14 -£1(71(204087) 

EnqHh NutonU bwaamiam Co PLCSH* 
DabSk 91*8 - £95* 

FA C. Euumist PLC5%% CTw Una U Sk 

1996 - CT37 843 (2SNo87) 

F4 C Pactac Invanment Trust PLCWwTama 
to sue tor Ord -37% 

Fhst SpenWt faw Trim PLCMOaianto to ate 

tor Ord -20%, % «B 
Fl aming Marc ama a inv Trust PLC35% Cun 
Prf Sk £1 -49(26*4087) 

GT Venture bwaatraant Co PLCOrd SOp 
(VWhout warrants] -77(24No87) 

Warrants to sub tor Ord - T5 (24No87) 
Garonoro Europaan tav Trim RC9%% Dte 
Sk 01*0 - £94% (20*40*7) 

German Saamtas tav Trim PLC Ord £1 - 
88% 93 (25*4007) 

German Sntetor Co's tav Trim PLCWBnama 
to su> tar Ord -52(2&*io*7) 

Otoba tavaabnant Trim PLC1D% Dte Sk 

2016 - £90%# 

11%% Cm Uns lit Sk 90*5 - £306 20 
Govatt OrtantW tav Trust PLC9% Cun Prf 
Sk - £48 (26(4o87) 

Govetr SaahxXc mv Trust PLC9%% Dab Sk 

2017 - EBsw# 

Qrahams RtatoU tav Tips* PLC7%% Dte Sk 
65*8 - £96% (24NOB7) 

Greenirtsr Imaaamnl Co PLCWWtwns id 
ate lor Ord -280(25No*7) 
i lw nbm a tova a twani Trust PLC5% Cum Rf 
Sk £1 -47 (25No87) 

(mnston Capital Truat PLC5%% Own Rf 
Stk -£60(25*4007) 

London A Sf Lawmanca (m ra ato wnt PLCOrd 
Sp -87{3**4o67) 

New Darien Ol Trust PLCWarranta to ate 
for Ord -9(23No87) 

New Guomaay SeaxtUes Trim LdCM 25p - 
90<24No*7) 

New Tokyo Investment Taut PLC Warrants 
to ate tor OM - 72 7 

Northarn SacurUss Trust PLC5%% Cum Prf 
Stk - ESI (25NoH7) 

Ooaana Oavetoomanl im TiuM PLCSk 2Sp 
-290(2414007) 

Ptsntabon Trost Co PLC7%% Cm Um Ln 
Sk 2000- £102 (25*4087) 

Raeburn bw a aaa wd Trim PLC 5% Cum Rf 
Sk -E48 

Rights end tasuaa Inv Trim PLCh»25p -72 
Si Andrew Truat PLC5%% CUn Rf Sk - 

£49 (25*4007) 

Scobten Eaeteni bw Tnm PLC4%% Cuat Rf 
Stk - £42# 

0%% Deb Sk 2020 - £92%# 

Scouted tavaatntara Trust PLCR5% Ctan Pfd 
Sk - £49 

.CuaiPMSk - £52 *4*4087) 

> Cun "A- Prl Sk - £09% (23ta87) 
Scottish Mortgage * Trim PLC8-12% 

Stepped IMDeb Sk 2028 - £102% 

8%-i4% Stepped taareet cw> Sk 2020 - 
El 30% (20NOB7) 

Scottish Natural Trim PL£8% Cum RfEI - 
58(25*4087) 

10% DabSk 2011 -£96% 
sactttd /usance Trust PLC4%% Cum Prf 8k 
- £43 (24*4087) 

Sacutuas Treat el Scotland PLC7% Dte Sdt 
88/83 - £88 (24*4007) 

Shfcas tavastmant PLCWmnts to ate tar 
Ord -40 

TR AusMte Xwastment Trim PLCWta To 
Subscribe tar Ortl -100 Q4No87) 

TR Ctar ol London Tnm PLC 6% Nan-Cun 
2ndR1Sk £1 -57(2574007) 

10K% DabSk 2020 -£97% 

TR mtafvtel * Gsnmal Tnm PLC10% Dab 
8k 2016 -£96% 

TR Tachnetogy hsesaaant Tnm PLC5% 
CunPrf&kEI -47 

TR Trustee* Cop PLC10%% Dte 8k 2016 
-£»%# 

Updown k wa eim enfCoRLCOtd 2Sp-362 

(24NoS7) 

Whan aw eew unt Co PLCB% Deb Sk 96*9 
-£83(24No87) 

8%% Deb Sk 201 6 - £88 


AmBrt iraeroattanra PLC 9% Cnv Una Ln Sk 
1996- £82 

Av ag ro PLC Cura PM cm Bad Pit 1997 Ip - 
656 

Banner Hamm Group PLCOrd lOp - 70% 
Btamectan/ca I ma i te td PLCOrd Sp - 18 
21 (25fto67) 

8% Cnv Una LnSk 1991 -£130(20*4067) 
Qtarttearoh PLCOid Ip -25% 78% 9 
New Ord Ip (Fp/RLA-28m/87) - 29 
Cokxgan IncShs erf Cora SMOjOi(RasnfcMd 
Transfer) -30(20No67) 

Company Of Designers PLCOrd 5p - 110 2 
Corporate Estates Ropentea PLCWtomms 
to aub lor Ord - S (23No67) 

Cramphom PLCOid SOp - 630 60 (25No67) 
Becawi Houaa PLC 65% Cm Cum Rad Rf 
£1 -95# 

Fritamy (London) PLC New Ord 3p 
(RVLA-0n2*7) - 76 
GU» Maw PLCOrd 2Sp - 220 OONoST) 
O oorataad Prim Group PLC 7% Cnv Cun 
Rad Prf £1 - 130 (24*4oS7) 

Horaoy Group PLCOrd Sp - 127 33 5 
(2SNo87) 

Johnson Fry PLCOrd lOp - 100% (24No67) 
Msrcoi Group PLCOM Sp - 63k 7# 
Rsndsworth Trim PLC7% Cum Cm Rad Rf 
£1 -81k 3k 

Rhrfm PLC 5.125% (Nafl Cm Cun Red Prf £1 
-HI 

Sigmax inknratonitf PLCOid lOp - 68 
Splash Product* PLCOrd 1 0p -SI 7 
(25*4087) 

Stanhope Prepe ntea PLCOrd 25p- 136 8 9 
401 5 

BMndon Private Hospital PLCOid £1 -166 
(24*4007) 

Tubular ExhfaUgn Group PLCOrd 5p - 20 2 

URS tatamadonal tacSha of Cora Stk SIL01 
-53 4(20No67) 

Vataerton tavestmwds PLC8% Cm Una Ln 
Sk 1997 - £85k 


The Third Market Appendix 

No. of bargaiita bidudad59 

ABabooi Group PLCCua Cm Rad Prf 2006 
25p - TDK (20No67) 

■Camp (pJEJ Hidga PLCOnl Sp - 45 (20N087) 


RULE 535 ( 4 ) (a) 

Bugtei wtd fa fM Bto wh or e 

prindpie market is autside the UK and 
Repufafic of IretuaL tewtbtluu ha not 
bean BtteU hi London and dealings 

■re aol rcconM hi the Offidsl LW. 


Groiseufe *$0.4,0.41 
GataOMb Hmerte 19* (29/LU _ 

Graiix Pan* UtstaB AS026 (25/11) 

S«Mt Erairro Mine 2^450.06 0441) 

H*na Lite Pceteimar HK54A56A POfUJ 
Haawa Nark Wm 6iy (23fU> 

Hooter Corp 72 (2301) 

Japan Rate YI19Z1] 

KMpartte tenures AS0222* 

Kart) Corp 920 (20/11) 

Kounorote Coro SILO 0401) 

Kirdtem (U&USTlj* 0501) 

KuNnt Hteytia (M 25 
Uma r GnaraA52V» 

MMtedwi AHnc^nna MS536 
MaUBShlia Electric ladirtlrlal 316.4 
V2U02213A (24011 
MftsrbtaW Henry bub Y63JL639A40 
Mourn Cwrtakee HIbk 6UOO (2401) 

Mam Martla Gold Utaat 36 (2S/U) 

NathiMl Ehctmtks (ConsofldKcO 4*20 (24/11) 
Nationals- NadsrtanOan CVA FL49.9 
New Zmaod GoUTMth II2SU8W OOmj 
NtaBta4MMaeA56.1A6.04(Ua (2901) 

Nerk FDsdm Uma 275 (2601) 

Oceanic Erphy Ord ASkW* 

®tSs&dt3»« 

Oflraet 9610 (2401) 

Pen ADMflne Utahn 105 (23/11) 

Param HUgi SFT0462.7S# 
PMlSKomrtxsrflattom tadeartra DU582L5853 
Ptanwer Ehctrenic 72490^2540 
Pcoehfcw lvaitu 

Re«ri Hotels (Hlrtasi 16*16 (2401) 
Sdrertaq-PtourfiCw S4CVI240U 
Selangor Cacaauts 20 (MfU) 

Sereomotte Eieetreota SSi# (2501) 

Shy Um Emtoru 39712* (23/1 1> 

SodMe NaOeHle EH Aqteatae FFRZ36 
Seudwrat Cota Mines b (20/11) 

Sen Hang Kri Go HXS2J) 

5m Hong Kal Properties 1150 HKS8VJL3 (24/ 

Swtrr Padflc V HKS2.42U475 <29011 
Target Peuoletta Ord 40 mkso.% 

Target PKnrieom ZD4SS* 

Vernaigtag Rtiracwriei 2S0* (2002) 

VuHaa Uinerak 1546 

Wattle EcUy GoM Ulus ASQJ (2401) 

WenHrid Minerals 115 (25/11) 

Wharf HMgs KKS5.9S (230D 

RULE 53 S ( 2 ) 

Applications granted tar specific 
bari^ins in securities not Sited 9n any 
exchange 

Amrigamated Meul Csrpn. 1B090J (2001) 

Aotao Annaa Agrtcriurc 7^80(2001) 

8eArfcanHMgi2>a,UA 

DottMHoor Inn. (2401) 

C ta iw w 114 (25/11) 

Chaanri btand Consnmhailore 100 (2501) 

Dart VUlley Ug^M sy 195 (2001) 


J (2501) 

Emub Horae Prafc. 11% Can. Red. Prf. 11*8 

Frsdrricki Place 90 
CRI Etaarnrics 100 (2001) 

Gale (George) 385,90 (2301) 

Creemur Hotels 4b (2501). 

Gnenscy Gas light 471 
Gotrascy Gas Light New 471 
HarrfslL) 25 (2001) 

Ndflted A Hnitand 225 (23011 

j£3 aZxftzsruf* M, * <anu 


Aberfayto ASSAM (2001) 
AbUbl-Frtca 950 (2 


1950 0001) 

Acorn SeoafUn 27*B*2«A74a45 
Ataertmas Inc £141* 

Allaae Esmndaa «« GfiOl) 
AlHtciHoSngilO* 

America BkrSc HcsDnrces Cwp Coat NPV mtg 
Anatantea Roncntee Bar* FL6Z2 (2401) 
Aagto-TraswaW Ctetarias 9171. (20IZ1) 

Arcadia Uiaarah 3h* (2401) 

Ana. Fmnduim lav 46 (2301) 

Auo. Ofl & Gas 30* 

Bteabo Gold Mines* CM/ID 
Bade Resources »35 (2401) 

SeverN Enterprises S8\* 

90# oil & uCcraisl3 

R n— i mu 

Browt^Famaii lac Uaa V S31VU £L7t* 
(25/11) 

Brash Writ man £12.95 

CSS. mnnnan-CJLFJ mr752.78076S.3S6 
Ctwrokee G/a« 57V*Q0/1D 

Chwcha ResowcesU (2501) 

aw newteraawi uunjuk emm 


Do. 5% Culm Prf. 

Do. 10% Htg. Dte Bdl. 1968*0 £»A5 

Lon and Overseas Land 97 (2501) 

London Wsfl Kite. 23215 

McfTvtl Ktdgs. 410 

Norton VOflenTriomh *w7 

Rmqtrt FC £1Z>2. 

Sheenes Start QO 
Stmhere Newne 401 (2VU) 


Special Eyes 26 0501) 

^HrUbeMKalH 


200 0001) 


55(2501) 


250(2301) 

RULE 535 (3) 

Dealings for Appro* od coopaoies 

"Heft/ In rnfastel explsrettoa 

Kenewre Basmrtes 2b 

■y Pwaitaataa of Am 


Plantations 

Na of bergaina taduded12 


Chfltagnn Corporation PLC DM 25p - 00 
(25*4007) 

9%% Cun Red Rf £1 - 109% 

9% Cm Une Ln Sk 1969 - £110 (28N067) 
Htaong Estate PLCOrd lOp - 60 (20No67) 
MattkoH BnrtwdSM 1 -50(23No87) 
Sapporo Pare Rtebar Eetatte PLCSkSp - 


Railways No,^b a rgalnainrfudBdna 


/LdOrd (tea l 

trenst) of *4PV - £005 (24*1087) 

Great Northern Iron Ora Properties Tnmae 
Carts Npv - £14% 8 23X (24No87) 
Ontario A Quebec Ri/inw Co6% Perm Dte 
Sk0nt Gu by &PJ - £40k 
Central London (*4ew) Otd Aaato SK - £47 
(25*4007) 


Shipping Na oumpatae tactadedlTO 


“assr 


PLC-A- NotLV CTO £1 - 600 


Prinincutar « Oriental Steam Nav Co8% Cum 
PUSk- £48(2014087) 
warrants to punttasa OM Sk - 170 
(2<Na07) 


Utilities 


Ng of bargtam tadudedlO 


American hikxinaiXjuTechn. CorpShs of 
Com Sk$1- 184% (20*4067) 

Bristol Charnel Ship Repairers PLCOid lOp 
-12X.%3>h 
3£S.NprfBrl 
607j3Bk81C 
627.484# 

GTE Corporation Cora Sk 30.10 - S37K# 

51.17334# 571.418# 57932# 
714^148# 

Manchester StapCanef Co B%Pwp Prf £1 - 


Money Dodca 8 Harbour CoCombtoM Unite 
-325 7 30 7 8 45 
SV% Rad DabSk 96*9- £83 1 


(20*007) 


>9 d — .M — am a a 

water woncs 

No. of bergatas inctadedS 


I Technology PLC 
ate tar Cid -15(24No87) 

Bthamia Arrow Hdgs PLCWta Tri Steeolw 

torOrd -47(24*4o87) 

W%CumPrtEI - 60% (2SNO07) 


Unit Trusts 

No.ofbargataetaeiuaBd32 

Handareon taumateMl TruttUnte - 13M 
(24No67) 

bU 0. Amwtoan Smaller Co's Retohic Urris 
-33LSI20NO87) 

ACCUtt (tote -343(23*4067) 

bLA OQold A General natdAeeua Untts - 
54.1 

MLS G. Hawtml Incomo Fund Inc Unfts - 

' ^ 

Accum Unfts >9U0 

MLS a Japan S a m e r Companies Fund hie 
Unto -62^3(241(087) 


Brtatol Watamoriis Co3^«(Fridy 5%)Cora 
Rf Bk - £47 (24*4007) 

CimOrtaga Wxrar Co3i%/Fmty 5%)Conx 
Ord Gk -£12S (20*4087) 

Cha«» Waterworks Co&l6%(FMy 4%%jPrf 
Sfc-£4fi(23No87) 

Cetaa Vrilay Water Col0% Rad Deb 8k 
96*8 - EBO (23*40071 
7%% Rod DteSk91/83 - £85% (2Sta67) 
Eadl WoroatteraNro Wtevoto Co 
_ -£14860 

Etefioume Waterworks Cb10%% RedOte 
Sk 95/07 - £100 

Enm Writer Cd3% Dte «k 31/93 - £88 
(20NO87) 

M% Rad Ote Sk 97*9 -£89% 100 
(24NoS7) 

10%% Dab Sk 9i*B - £100 (20*M87) 

Md Kent Water Co 7%% Rad Deb Sk 91*3 
-£B7 (SONoflT) 

9%% Rad Dte Sk 07/88 -199% 100 

04NO67) 

MW-Souuaro water Co 10% Rad Dte 8k 
BS/94-Z97* (23(4067) 

H e wcHfe A Qatashaad Wear Co3J1t(Pwiy 
^ 5%JCona PrfSk -£45* 

Portsmouth Water Co2.1%(Firay 3%)Pkp Prf 
EK-£33(24No87) 

(Btemantworth WMer »>4%CM6 Dte Sk 

-£3614 8 (23No«7) 


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16 






































































































































































18 


























































































































































































































































































































































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83 33 83 

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TROLLOPE & COLLS 

COXSTJUJCTIOM 


Saturday November 28 1987 


01-377 2500 



Soviet reforms to be speeded up’ 


THE LEX COLUMN 


BY ROBERT IIAUTHNER, DIPLOMATIC CORRESPONDENT 

RESTROEKA, the Soviet eco- would be no slowing down of the 
nic strategy proclaimed by Mr process of economic reatruCtur- 


PERESTROIKA, the Soviet eco- 
nomic strategy proclaimed by Ur 
Mikhail Gorbachev, the Soviet 
leader, represented a real revolu- 
tion which would affect the 
whole fabric of Soviet society. 
Professor Abel Aganbegyan, Mr 
Gorbachev's chief economic 
advisor, said in London y ester- 

are changing the stereo- 
type of Soviet thinking," he told 
a packed auditorium at the 


ing and "no tinkering" with cup- 
rent bad practices. On the con- 
trary, the Soviet leadership 
intended to speed up perestroika 
and move from the stage of 
words to "large-scale action/ 

It was the task of the new pol- 
icy to create the social and eco- 
nomic conditions in which 


greater independence of individ- 
ual enterprises, which would be 
able to decide on how to use 
their own profits 
Self-management, self-financ- 
ing and coat accounting were all 
important aspects of the new 
economic policy, as was the cre- 
ation of a mare realistic pricing 


system. The prices of soviet 
products would be reviewed peri- 
odically to keep them in line 


Royal Institute of International 
Affairs at Chatham House, Lon- 


industry could flourish. This 
required radical changes, partio- 


Affairs at Chatham House, Lon- 
don. The Soviet economist was 
delivering the first annual public 
lecture established by the 1987 
Anglo-Soviet memorandum of 
understanding. 

.Prof Aganbegyan said there 


ulariy in the existing centralised 
system of economic manage- 


system of economic manage- 
ment, based on an administra- 
tive chain of command which 
repressed democracy and initia- 
tive. 

Among the reforms outlined 
by Prof Aganbegyan were the 


odically to keep them in line 
with world prices and the num- 
ber of centrally set prices would 
be reduced. 


On the currency front, the ulti- 
mate aim was to make the rouble 
convertible. This would be 
achieved progressively, starting 
with convertibility against the 
currencies of other eastern bloc 


countries and then extending it 
to capitalist antendes. 

In one of the frankest analyses 
ever delivered by a leading mem- 
ber of the Soviet establishment, 
Prof Aganbegyan painted, a dis- 
mal picture of the existing Soviet 
economic system and its perfor- 
mance over the 16 years preced- 
ing Mr Gorbachev's ascent to 
power. 

During three five-year periods 
from 1971 to 1985 the rate of 
growth of the national Income 
roll both relatively and abso- 
lutely. 

There was a period of unprece- 
dented stagnation from 1979 to 


1982, during which the output of 
industrial goods fell by 40 per 


industrial goods fell by 
omit and agricultural pro 


declined to below its 1978 level 
"People’s living standards were 
going down. A pre-crisis situa- 
tion nad developed and some- 
thing had to be done," he said. 

Un derlinin g the d efic i e ncies of 
past Soviet housing and health 
policies. Prof Aganbegyan 
stressed that perestroika entailed 
not only quantitative but quali- 
tative improvements. 

In the past, only left-overs"! 
from the state budget were allo- 
cated to social spending. From, 
now on, the yardstick would be 
an improvement in people’s liv- 
ing standards. It was important 
that economic reform should not 
take place in Isolation from 
social considerations. 

Gorbachev visit. Page 8 


A semi-merry 


Christmas 


Christmas is coming, and the 
retail trade is codting its ear Jar 
the festive jingle of the tills. The 
extra twist this year comes from 
the of the stock markets' 


FT Index fell 6.2 to 136&2 


the collapse of the stock markets' 
in October. If consumer confi- 
dence really has been dented, 
now is the time for it to show 
through, and more so among the 


Maxwell 
team to 
keep up 
attack 


China to allow estate agents 
as part of economic changes 


BY ROBIN PAI&EY AM) COLMA MACOOUQALLM PEKING 


By Philip Coggan 
BPCC, the pnblfj 


BFCC, the publishing sub- 
sidiary of Maxwell Commu- 


nication Corporation, yes- 
terday vowed to press 
ahead with the purchase of 
pop singer Elton John's con- 
trolling Interest In Watford 
Football Club, in spite of 
the Football League's oppo- 
sition. 

The teams hove thru lined 
up for football's match of 
the season. On one side, in 
colours of yellow, white and 
yellow. Is Mr Robert Max- 
well, the publisher who now 
has interests in Watford, 


Derby and Oxford respec- 
tively; on the other, foot- 
ball’s establishment - nor- 
mally n rather colourless 
entity. 

Mr Maxwell opened the 
game when he said last 
week that he would pull oat 
of the deal if the Football 
Leagne's management com- 
mittee did not support It. 
That pledge appeared to 
have become something of 
an own goal when, on Thure- 


CHINA plans to introduce build- 
ing societies next year and allow 
individuals to set up as estate 
agents as part of a package of 
radical economic reforms. 

, The proposals were unveiled 
by the State Commission for Res- 
tructuring the Economy. Mr 
Song Tingming, director of the 
commission, said the reforms 
would also include the creation 
of four new state investment cor- 
porations, the introduction of a 
15 per cent construction tax, a 20 
per cent levy on low priority 
construction projects, a general 
tightening of credit control and 
the introduction of a two-tier 
taxation system. 

Officials are also considering 
how best to make the Chinese 
currency, the Renminbi Yuan, 
into a fully convertible interna- 
tional currency. Mr Sang said: 
"But 1 do not expect any major 
decision in the foreseeable 


future. I only expect some 
adjustment of the Renminbi 


adjustment of the 
against the US dollar." 


The introduction of building 
societies or "house banks" will 
start experimentally in 17 large 
and medium-sized cities. They 
will mainly be engaged in selling 
house leases although they will 
also deal in land leases. Mr Song 
said the scheme was designed to 
alleviate China's chronic housing 
shortage. "For example in Peking 
each person has on average only 
six square metres of living 
space/ 

The creation of four new 
investment corporations will end 
the system of interest-free fund- 
ing of large national projects. In 
future, the Ministry of finance 
will provide some investment 
funds but the majority will have 
to be raised through the new cor- 
porations. 

This proposal has been 
approved against the wishes of 
both the Ministry of Finance and 
the State Planning Commission, 
which objected to their loss of 
control over investment. "Our 
goal is to get rid of the situation 


in which only one body controls 
investment," said Mr Song. 

The new reform will include a 
twin attack on the overheated 
construction sector. Construction 
projects considered unnecessary 
will have to pay a 16 per cent 
construction tax. In addition, 
they will have to spend an 
amount equivalent to 20 per cent 
of the total project cost on gov- 
ernment issued bonds for the 
financing of key projects of 
major national importance. 
These two proposals will raise 
the total cost to the developer of 


Midland, 
Hongkong 
agree on 
shake-up 


through, and more so among the 
share-owning US population 
than in theTTK. Perversely, it 


Sterling 

•gainst the DoBar (London) 
$per£ 


seems to be the other way 
around. 

Main Street America has a 
funny feeling that the events of 
October may yet take their toll 
But for the moment. It is thank- 
ing its lucky stars for a certain 
event in December. On the busi- 


By David L— cei— . BnnMog 


unnecessary projects by a third. 

Mr Song said: "This should 
help to centred our overheated 
investment." 

The reform of the taxation sys- 
tem will sep a rate national and 
local taxes, each tier of govern- 
ment being set free to decide its 
own budget and to raise taxes to 
finance it. "A new federal tax is 


MIDLAND BANK and the Hong- 
kong and Shanghai Bank have 
agreed a co-operation plan 
involving the merging and trans- 
fer of branches worldwide and 

an qgchmgg of mhniHiariw 
A circular sent to Midland 
shareholders yesterday seeks 
their approval for Hongkong 
Bank's recent offer to buy & 149 
per cent stake in Midland for at 


Sir Kit McMahon, Midland's 
chairman, tells shareholders: 
"The development of this rela- 
tionship wHl greatiy enhance our 
ability to gain profitable nuatot 
share in our areas of emphasis." 


when Christmas panic sets in in 
earnest • the Wall Street/Main 
Street link was looking surpris- 
ingly weak. Whatever the objec- 
tive evidence to the contrary, 
most of America’s private share- 
holders simply do not fed that 
much poorer - and those who do. 
are prepared to ignore it. While 
unemployment stays low, paper 
losses on investments made for a 
rainy day will have a limited 
impact on the cash register. 

The Conference Board b .pre- 
dicting an average household 
spend at Christmas of 4380 this 
year - the same as last year. The 
distribution of this largesse will 
almost certainly change, with 
big ticket items nke cars and fur- 
niture - not to mention furs and 
- suffering most. And 
retailers, already in trou- 



bond yields have jumped sharply 
after a fortnight of calm. Far 
from heading for a recession, the 


from heading for a recession, the 
US economy looks as robust as 
ever; and if an economy with 
full employment sees its cur- 
rency depreciate by 10 per cent 
in a matter of weeks, there b 
more than a whiff of inflation in 
the air. 


Jan 1987 


areas through new openings has 
more than absorbed the extra 
volume. 

Since the market crash - even 
though relatively few people in 
the UK have actually lost money 
- there is some evidence of a loss 
of consumer confidence. Dixons’ 
experience of a fall off in sales of 


Midland Bank 

If Hongkong and Shanghai 
Banking Corporation is prepared 


to pay a near one third premium 
over Midland Bank’s current 
share price to buy a 14.9 per cent 
stake in Midland Bank, should 
the latter’s shareholders be con- 
cerned? Judging by the rum- 
blings in the City over the last 


big ticket goods virtually the day 
after the stock market first fell 
suggests that consumers are ner- 
vous of spending the piles of 
cash that they undoubtedly 
have. 

It may be that confidence will 
return within a few weeks - and 
Christmas, though sometimes 


fortnight there b at least one 
well known Institution which b 


well known Institution which b 
wondering whether it should 
oppose Midland Bank’s efforts to 
bolster its capital position by 
taking Hongkong Bank's money. 
To the layman, this might seem 
rather strange. True, Midland 
Bank b asking its shareholders 


The plan alms to reduce over- 
ip between the banks’ 


under discussion for next year 
but nothing has been decided 


but nothing has been 
yet," Mr Song said. 


Funding boost for societies 


BY NICK BUNKER 


day, the League not only 
refused to back the move 
but said it would not be 
desirable for any individual 
to appear to be iu a poaltloM 
of influence In the manage- 
ment of more than one dub. 

However, Mr Maxwell, 
after calling the League 
committee "iaconpeteat, 
bungling, selfish amateurs* 
os Thursday night, now 
appears to be following an 
unusual soccer tactic - 
Ignoring the opposition 
altogether. The decision to 
proceed with the Watford 
deal, made by the BFCC 
board in Mr Maxwell's 
absence, has left the ball 
firmly in the League’s half. 

The League now seems 
likely to call a meeting of 
all the 98 football club 
chairmen to dismiss ways of 
amending the rales to Mock 
the BPCC bid. However, 
such a meeting could take 
three weeks to arrange and 
thus would inevitably take 
place well post the Decem- 
ber 8 date by which the 
Watford deal will be com- 
pleted. 

At the moment, Mr Max- 
well and BPCC seem to have 
a large team on their side. 
Yesterday Mr John Hoi- 
bran, BPCCs chief execu- 
tive and the new Watford 
chairman, referred to the 
help of the board, the man- 
ager) the players, the sup- 
porters and “the good peo- 
ple of Watford and the 
surrounding towns 
Background, Page 4 


lap between the banks’ 
operations and to rationalise 
resources and customer bases. 
However, both will remain fril- 
ly-fledged international banks, 
retaining operations in the 
money centres and capital mar- 
kets. 

In commercial banking. Mid- 
land will take over the running 
of Hongkong Bank's offices in 


counting heavily to move large 
inventories; sales may hold up, 
but profits scarcely can. Mean- 
while those who sell to estab- 
lished wealth rather than the 
yuppie market are likely to come 
out ahead: Jaguar is predicting 
record US sales next month. In 
the bleak light of a New Year 
dawn, though, concern over jobs 
and taxes will make a seasonal 
reappearance with the retailer 


bad far retailers. But the gloom 
ier possibility is that, like the 
stock market, sales of high cost 
electrical goods are a lead indica- 
tor of a downturn in the econ- 
omy. And if the big retailers 
were finding it difficult to gain 
volume when sales were suppos- 
edly strong, how will they cape 
with zero growth or decline? 




* 


BRITAIN’S building societies are 
to be allowed greater freedom to 
turn to wholesale money mar- 
kets to fond mortgage lending. 

From Janaary 1, the maximum 
am ount they can borrow from 
wholesale, so ur ces, such as the 
Euromarkets, will rise from 20 
per cent to 40 per cent of their 
total liabilities, the Government 
said yesterday. 

The Building Societies Associa- 
tion warmly welcomed the deri- 
sion. It had asked for the limit to 
be raised to SO per cent. 

The BSA has for six months 
been lobbying the Building Soci- 
eties Commission, the industry’s 


societies were not at a competi- 
tive disadvantage compared with 
other mortgage lenders. 

Increasing competition for the 
public’s savings lias forced many 
societies to rely more heavily 
than hitherto- on wholesale 
instr umental like Eurobonds, cer- 
tificates of deposit or revolving 
underwriting facilities to support 
their buoyant mortgage lending. 

The Halifax, the biggest build- 
ing society, has seen Us whole- 
sale funding level edge up from 8 
per cent at the end of last year to 
just under 10 per cent. The 


supervisory body, arguing that 
the 20 per cent threshold was an 


industry average is about 12 per 
cent, although a few societies 


the 20 per cent threshold was an 
unreasonable constraint on 
financial flexibility. 

Mr Tony Stoughton-Harris, 
BSA chairman, said the Govern- 
ment’s move would ensure that 


have been nearing 18 per cent, 
usually regarded as the maxi- 
mum workable level under the 
present regime. 

Announcing the Government’s 
decision to MPs , Mr Peter UHey, 
Economic Secretary to the Trea- 


sury, said the 20 per cent limit 
was a constraint on the opera- 
tion of only a few societies, but 
it hindered the planning of 
many more. 

The Building Societies Com- 
mission , recommended, an 
increase to 40' per cent, rather 
than 30 per cent because the 
higher figure would give societ- 
ies a better basis far long-term 
planning. 

Amid the euphoria from build- 
ing societies yesterday, a note of 
caution was struck by Mr John 
Ginarlls, banking analyst with 
Banque Paribas Capital Markets. 

He said he was "very sur- 
prised” that the Treasury should 
allow societies to Increase so sub-' 
stantially their exposure to 
potentially risky wholesale 
money markets when a recession 


Europe, apart front London and' 
Frankfurt, and Hongkong Bank 
will assume control of Midland's 


offices in Bangkok, Singapore 
and TaipeL The banka wfll be 


jointly represented in Seoul and 
Midland will keep its offices in 


Midland will keep its in 

Peking arid Bombay because of 
their importance to UK trade fin- 
ancing. 

Midland wfll buy Hongkong 
Bank's European finance busi- 
ness, with net assets of 513m, 
and blend it with Forward Trust, 
its finance house subsidiary. 
Hongkong Bank wfll buy Mid- 
lands Canadian banking busi- 
ness with £27m in net assets and 
merge it with its bonk there. 

The banks believe they can 
work together in aerospace and 


the user. In the UK, by co n tr as t , 
retailers are starting to look like 
losers already. The idea prevail- 
ing in the UK market that stores 
shares ore defensive in times of 
crisis, which buoyed , the sector 
imnyediately following the crash 
six- Weeks, ago, has- begun to wear 
thin. It has only taken a few 
stories of poor trading to turn 
the sector’s recent autperfarm- 
ance around. 

..The problem Is that while 
retail sales figures have been 
buoyant this year, and other 
influences - sharply rising earn- 
ings, low retail Inflation, mort- 

S ge rate reductions - should 
ve been favourable to retail- 


Markets 


The London equity market 
this week has seemed becalmed 
in the eye of the storm, with no 
real indica t ion of where it is 
headed next. -This- is partly due 
to the Thanksgiving holiday on 

Wall Street, bat there is ateo a 
sense that fond managers have 
finished the scramble to realign 
their portfolios in the wake, of 
the equity collapse and are now 
happy to rit on their hands. 

The drying up of business is 


starting to create a real problem 
for stockbroking firms, volume 
yesterday was a fifth of its peak 
at the tune of the crash, and a 
tenth of that was in BP. If. the 
market were to resume a down- 
ward drift, volume could well 
stay at there levels; and though 
firms might be reluctant to wield 


shipping finance. Insurance 
broking, pro p e rty lending, ahip- 
broking, travellers cheques and 
private banking. Hie circular 
says co-operation is being 


era, many have found the going 
tough. The answer to that 
conundrum might be that the 
rapid expansion in retail sales 


could Increase 
and possession 


defaults 


_ . a 

new issue of more than 5 per 
cent of the bank's equity. On the 
other hand. Midland Bank would 
find it impossible to launch yet 
another rights issue anywhere 
near the minimum 475p that The 
Hongkong Bank is prepared to 
pay- 

Until now the pre-emption 
rights debate has bemi concen- 
trated on cases of companies sell- 
ing shares to new shareholders 
at discounts to market prices. 
Clearly, the Midland Bank issue, 
which must be voted on by 
shareholders next month, does 
not fit into this category. Never- 
theless, there is a potential con- 
cern that Midland may be selling 
a strategic stake in itself too 
cheaply, since it reduces the pos- 
sibility of a third party making a 
takeover bid. This in turn Is 
complicated by the fact that the 
Bank of England would almost 
certainly block a hostile bid for 
Midland. The question which 
shareholders need to ask is 
whether the commercial and 
financial benefits of Midland’s 
Hongkong link more than offset 
the reduction of any bid pre- 
mium. Midland has made a good 
case. 


Irish shoot-out Continued from Page 1 


tentfous danse in the act pro- 
vides for warrants to be appealed 
against in the Irish High Court if 
the offences to which they relate 
are more than three or four 
years old. 


debated at the moment imposes 
safeguards in relation to the 
opera ti o n of the co nv ention. 


Opening the debate in the Irish 
uriament yesterday, Mr 


S arliament yesterday, Mr 
aughey said that he understood 
that many Irish people were 
troubled by the changes pro- 
posed under the European Con- 
vention for the Suppression of 
Terrorism, which will pass into 
law next Tuesday. The act being 


The o pp o siti on labour Party 
has already expressed its inten- 
tion to vote against the amend- 
ments and, after a hard-hitting 
speech from Mr Desmond O’Mal- 
ley, it was dear that the Progres- 
sive Democrats would do so also 
Mr Sean Barrett, spokesman far 
the largest opposition party, Fine 
Gael, also indicated his party's 
intention to put down amend- 
ments to many sections of the 


amended act. 

John Hunt adds: Mrs 

Thatcher is disappointed at the 
modifications that Mr Haughty 
has propos ed t o the arrang e- 
ments for extraditing terrorists 
from the republic to Northern 
Ireland. 

The Government’s view is that 
the proposals would not improve 
extradition procedures and 
might even make them worse 
Britain believes the result will be 
that extradition cases wfll con- 
tinue to get bogged down in the 
Irish courts. 



CHIEF LONDON PRICE CHANGES YESTERDAY 


(Prices la pence mi less otherwise indicated) 


Anchor Chemical . 


Biotechnology lavs. . 

Chamberlin* Hill _ 

Delta Group 

Edfaro 

Electronic Rentals _ 
KwftSare 

Leigh Interests 

Mersey Dock Units _ 

pearl Group 

Scot & Newcastle „ 

Sheraton Sea. 

Siebf? 

Tate&Lytc 


630 + 15 

811 + 19 

65+15 
111 + 11 

222 + 

203 + 10 

78 + 6 

292 + 10 

177+13 
368 + 15 

345 + 10 

223 + 11 

63+13 
S84 + 15 

701+34 


Victor Products 
WeOcame 






GainsThxauidstamp duty. Mmarkets 

and wishing you were there, you can be -now, without 
delay. 

sider ours - tfaTunivtreal 

Call Nigd Parker cm Jersey, Channel Islands 
(0534) 27301 for further information and a pro sp ect u s, on. 
the basis alone of which applications for partiripafing shares 
can be made or write to him at Gartmote Fund Manages 
LnteraatkmalIimlted,6CiledomaPlace,StHelietJesey, 
Chann el Islands. Alternatively, contact our; Investor 
Services Department, on 01-623 1212 whowill forward 
your enquiries to Jersey. 


CAPITAL 

STRATEGY 

FUND 

LIMITED 


Gartmore 



the axe this side of Christmas, 
there could be nasty cutbacks in 
the New Year. 

The dollar has already 
resumed its downward drift, hit- 
ting new lows yesterday against 
the D-mark and the Yen. The 
botched nature of the US budget 
accord has now fully sunk in, 
and hopes are fading that the 
Bundesbank might feel obliged 
to cut German interest rates in 
response. Meanwhile, US long 


i 










merry 

mas 


ttei.: 


j 


" C[ ^ B** 



Financial Times Saturday.November 28 1987 


WEEKEND FT I 



Saturday 28/Sunday 29 November 1987 


* MARKETS • FINANCE &THE FAMILY • PROPERTY * TRAVEL • MOTORING * DIVERSIONS * HOW TO SPEND IT • BOOKS ♦ ARTS • TV • 


STAR WARS 


"SORBET?" said the waiter. “Sorry, sor- 
bet's off. We have a problem with the 
machine. Decaffeinated coffee? I am afraid 
we do not serve it." 1 tensed forward in my 
seat as a flicker of irritation appeared on 
the face of my guest. Yet it vanished in & 
millisecond, unnoticed by the waiter or by 
anyone else. 

As hardships go, a lack of sorbet and 
decaff do not loom large on a cosmic «wii» 
Worse things can happen. Yet this meal 
was different, for I was sitting in a Mich- 
elin one-starred restaurant in the centre of 
London at the cross-roads of the world - 
privileged fby definition) and cocooned 
(you would have thought) in a micro-world 
of pleasure where wonderful thing a are 
served to you with precision and panache. 

What was more, the guest sitting opposite 
me was a mart from the shadows. Unher- 
alded and anonymous, he moves mysteri- 
ously but with speed through some of the 
most ratified strata of the high-life scene, a 
maker of fortunes and reputations, a 
wieldet of power - in short, the one man in 
Britain who really should be served a sor- 
bet whenever such a fancy flits arr ows his 
mind; the Michelin chief inspector. 

The Michelin chief inspector for Britain is 
44-year-old Derek Brown who is slim and 
bespectacled and who eats his food with 
relish, flourishing his cutlery like a high- 
priced surgeon. (T will give you no more 
clues. You wouldn't spot him anyway, for 
he is a man. of deep tradecraft) Chief 
inspector Brown is head of Michelin’s UK 
tourism department, editor of its publica- 
tions and the leader of an eight-man 
inspectorate that eats its way round Britain 
checking good restaurants for the Michelin 
Red Guide, whose appearance each Janu- 
ary, and its awarding of stars* stirs fanfare 
and trepidation. 

After alii much is at stake; Fortunes can 
be won and lost on Mlchdin’s say-so for 
Michelin’s stars are emblems of great merit- 
coveted and fought for. Nico Ladenis, one 
of Britain’s tiny handful of two-star chefs, 
says that his life's ambition is to conquer 
the “summit of excellence - three Michelin 
stars ■ because "great restaurants are held 
together by this terrifying symbol.' 

Outside the star system, Britain is still a 
world showcase for dreadful food and cook- 
ing. When the food we get publicly isn't 
spittingly horrendous or flung on card- 
board plates in fast food outlets it can be 
hysterically pretentious, for we pluck stray 
ideas from France and debase and demean 
them as rapidly as possible. 

Michael Smith, an authority on English 
food and cooking, argues that on the whole 
we treat our tourists well because we need 
their money. Yet we resent their presence 
and their funny accents. "Above all we 
reaenMhe effort entailed in proyldht&lhera 
with decent food.* He says that we feed our 
visitors (and ourselves) 'American food, 
French food, Italian food, Greek, Chinese, 
Japanese. German, Austrian, Indian, Dan- 
ish, Thai, Indonesian, Turkish, Armenian, 
Jewish, Arab, Mexican. "Yet in the greatest 
capital city in the world you would be hard 
put to count on your ten fingers anywhere 
offering an across-the-board selection of 
national (English) dishes. And where 
among the thousands of restaurants in this 
city of over 12m people is there one serving 
Scottish, Irish or Welsh food?" 

At the present rate of progress it may be a 
century or more before British food and 
restaurants, taken as a whole, even start to 
rival our achievements in the other per- 
forming arts. Yet standards are improving. 


slowly and perceptibly, at least at the apex; 
as measured by Michelin. Mystery and neb- 
ulousness cloud the Michelin star system. 
Let me try to dispel than. ' 

To begin with, Michelin stars In Britain 
are scarcely more numerous than gold sov- 
ereigns on an orphanage Christmas tree. 
The 198? Red Guide for Britain and Ireland 
lists only 18 . one-star restaurants in Lon- 
don, three two-star (The Terrace, La Tante 
Claire and Simply Nico), and one three-star 
(Le Gavroche). Total firepower in the capi- 
tal 22 stars. Away from London there is 
one three-star restaurant (Waterside Inn at 
Bray-on-Thames), one two-star (Le Manoxr 
aux QuafSaisons, outside Oxford), and 20 
one-star, including two in Scotland and 
three in Ireland. Total provincial firepower: 
25 stars. Combined British and Irish star- 
power. }ust 47 twinkles, a minute fraction 
of that in France, though France, of course, 
is civilised, with thousands more good res- 
taurants. 

Michelin first awarded stars in Britain 
and Ireland in 1974, when 24 restaurants 
won a single star. By 1980 the firepower 


At the highest level, as 
assessed by Michelin, British 
food and cooking is certainly 
improving. But how does the 
star system work? What are 
the pressures on a top chef or 
patron? To find out, Michael 
Thompson-Noel met a man 
from the shadows: the chie f 
inspector of Michelin. 


had risen to 85 stars. Only four restaurants 
have held stars uninterruptedly: Le Gav- 
roche and the Connaught in London, 
Waterside Inn, and the Box Tree at flkley. 
In 1977 these four became Britain's first 
two-star restaurants. Le Gavroche was 
awarded its third star in 1982 and the 
Waterside Inn its third in 1985, though the 
Connaught was relegated back to one-star 
status in 1982 and the Bax Tree ditto in 
1967. Quite a few restaurants have held 
stars for only one or two years before fad- 
ing or folding, for the pressures on a star* 
chef or patron can be titanic. 

‘We may be slow to award stars initially," 
says chief inspector Brown, "but we move 
with alacrity when taking them away. We 
must have eaten in 10,000 to 12,000 estab- 
lishments oyer _the last 15 years, for we 
visit -every- res tau r ant that. would be of. 
interest to our guide. V’ ........ 

The inspectors' average age Is 80. AH are 
British, all are from the hotel industry and 
all have cooked and managed restaurants. 
They spend two weeks on the road, lunch 
and dinner every day, and one -week in the . 
office, preparing their reports. They keep 
this up for 10 months out of 12, moving 
round continually. It takes*- a Michelin 
inspector six months to eat his way round 
Britain. When an inspector's job is adver- 
tised Michelin has to sift through 400 appli- 
cations. 

The inspectors visit restaurants anony- 
mously and Michelin- pays all bills. In 
return for this labour of love Michelin sells 
50,000 copies of its UK Red Guide in j 
Britain plus another 40,000 overseas (it ; 


costs. £6.75), 'compared, with sales of 
700,000 worldwide for the French guide. 
All up, Michelin is France's sixth largest 
publisher by weigh t-of -paper, though its 
guides and maps represent only a tiny frac- 
tion of turnover for what is the world’s 
second largest tvre comoanv. 

Naturally the. Michelin Inspectors hover 
■ like blowflies when a restaurant is on the 
brink of stardom, or about to go nova, or in 
danger of dirappearing down its own black 
hole. “Restaurants that are candidates for a 
star can be seen as many as ten tiroes in a 
year," says chief inspector Brown, “with 
lengthy reports written after each visit. 
Then there is a series of meetings with the 
final one lasting three days to decide the 
awarding of stars. If we've been to a restau- 
rant 10 tunes we expect 95 per cent of all 
the food to be of star quality. We’re after 
consistency. We don’t think there is room 
for error in our system." Brown himself. 
attended hotel school, worked in London, 
cooked for two years, ran a restaurant, 
worked as a wine waiter abroad, ran hotels 
in the West Country and joined Michelin 16 
yean ago as a food inspector. 

Who defines standards? “There is an' 
attempt to achieve uniform standards 
throughout Europe," he says. "In a sense 
the industry sets its own standards. We 
don't look for something that doesn’t exist. 
Inspectors have periods in other countries 
to see what's going on. Standards come 
from France, but we don't have a book of 
French instructions saying this is how yon 
judge a starred restaurant. An Englishman 
could just as easily go to Spain and evalu- 
ate Spanish cooking.” 

Although Michelin’s celestial system occa- 
sionally inspires controversy among outsid- 
. era, it is regarded with enormous roped by' 
those -who have joined the elite. "A lot of 
people," says the chief inspector, ‘ask us 
what they have to do to get a star. And we 
say: that’s not what you're in business for.' 
There’s no point cooking one-star food and 
having an empty restaurant. Your ambition 
should be to satisfy your customers and 
then think of accolades.* 

To break into the star system takes art- 
istry and energy and great balls of cash. It 
is estimated that to establish a three-star 
restaurant in London would cost over Sim. 
Even a one-star restaurant in central Lon- 
don probably signifies an investment of at 
least &250.CO0, though the magnitude of 
the start-up cost depends on whether or 
not a freehold is purchased. The chef and 
the cooking are all-important, yet ambience 
and comfort are certainly weighed In the 
equation. At the two-star level, let alone 
three, a resta u rateur is likely to have spent 
mightily on decor, furnishings, porcelain, 
cutlery, glassware and so on. . 

Initially, scar candidates are appraised on 
numerons key points: Is the menu interest- 
ing? Hie food seasonal and very fresh? The 
dishes prepared and cooked property? The 
ingredients compatible? Does the presenta- 
tion show flair? Is the service professional 
or too intrusive? The tableware scrupu- 
lously clean? The cutlery correct? “At the 
two-star level," says the chief inspector, 
"there must be more elaboration in terras 
of depth of cooking - and no mistakes. 

. Everything must be beautifully made using 
the very best ingredients. Three stars is 
another dimension again.* 

Vincent Calcerano is proprietor of the 
one-star, Rue St Jacques in London's Char- 
lotte Street (the chef is Gunther Schlender 
and there is a 
McTaggart, who 


and there is a -sleeping partner, John 
owns 80 per cent of the 



shares). Calcerano claims that It is harder 
to win stars In Britain than in France or 
Belgium, a view shared by some of hia 
rivals but certainly not by alL "In the last; 
two years in London 35 to 40 restaurants' 
have sought to join the top league, but, 
many are tourist traps. We've spent nearly- 
Sim in four yean on two refurbishments 
(the figure Includes the freehold). This res- 
taurant is pure luxury. It cannot make 
large profits," 

At L'Arlequin (one star, Queenstown 
Road, Battersea) chef-patron Christian Del- 
toil says that there is a dear difference 
between one and two stars, las of a gap 
from two to three. "I have a budget for a 
second star," he says manfully. A year ago. 
the Restaurant Suntory in St James's; 
'Street, London, became the first Japanese' 
restaurant in the world to win a Michelin 
star and strives, says manager Masaru U ch- 
id a, "to prepare good circumstances for 
entertainment. There is a lot of pressure 
but they are Very pleased with us in Tokyo. 
Very. From two years ago we make a small, 
profit." 

1 At Caloot Manor (one star,' Tetbnry, Glou- 
cestershire) owner. Brian Ball and chei 
Ramon Fathing (a 26-year-old from Essex) 
agree that a second star would mean more 
investment, more space, a more important 
wine list “But we’ve cracked the consis- 
tency," says Fathing. "Just to maintain a 
star you have to cook to lte-star stan- 
dards." Profits can be hard to find even at 
the two-star level. At 63, Nico Ladenis says 
that he is the oldest of London’s top chefs 
though he hopes "one day, against all odds 
and logic, to achieve three stars. But I 
would stop very shortly afterwards." Gen- 
erally portrayed as an ogre-genius (he 
denies the first part), he owns Simply Nico 
(Rochester Row, Victoria). 

"It cost me £200,000 to kit this restaurant 
out from a shell. It’s a 34-seaxer, barely 


daughter. On a turnover of £14,000 to 
£15,000 a week, including VAT, my net 
profit is 6 to 7 per cent. At our first restau- 
rant in 1973 we charged £7 for two. In 1987 
we charge £90 for two, but our profit mar- 
gins were higher all those years ago." 

He had a bad experience with a restau- 
rant in Reading; but rays that a lot more 
chefs are being forced out of London by 
exhorbitant start-up costs. "There are so 
many obstacles conspiring against the 
high-quality restaurateur when he begins: 
rents, rates, planning applications, licens- 
ing laws, etcetera. The picture is bleak for 
the small man, the inspired amateur or the 
gifted young chef trying to begin. In Lon- 
don large sites become big, busing theme 
restaurants. Out goes the talent in the 
kitchen, in comes the simple cooking pro- 
cess for high volume and the conveyer belt 
of American -style service." Ladenis adds 
that hia own decision to open in Reading 
was a catastrophe: "It rained the whole 
year we were there. I was in a permanent 
daze of. amazement at, the expectations of 
certain customers." 

The man that Ladenis regards as the 
“giant of the London scene" Is Pierre Hoff- 
mann, chef-patron at La Tante Claire (two 
stars, Royal Hospital Road, Chelsea) who is 
certainly amusing. Hoffmann has spent 
almost £400,000 on his restaurant. "Is a lot 
of money. Now I've got the bank manager 
to think of." He says that he reserves 60 per 
cent of his places for English people 
because they are his best customers. “Aper- 
. itil Bottle of white. Bottle of red. Digestif. 
Very good and jolly. Americans ask for a 
dry martini, salad, steak." 

To move from two stars to three is the 
unique achievement (so far) of the Roux 
brothers, Albert and Michel, who have used 
their extraordinary gifts to build a span- 
gled empire. Albert owns 100 per cent of Le 


^> 35 -/ A 

Gavroche (say £55 per head for dinner), 
Michel 100 per cent of Waterside Inn, while 
their holding company, Roux Restaurants 
(turnover. £lOm-ish) fosters Le Poulbot, Le 
Gamin, Gawers, Rouxl Britannia, No 3 
Sydney Street, Fortyseven Park Street (an 
apartment-hotel), and so on. 

They are feted and admired, and have an 
army of chef-disciples, many of them 
English, fanning out through Britain, 

Albert says that the Michelin system In 
Britain is “100 per cent similar to the 
French system. It is a bible. People have 
committed suicide when they've lost a 
star." Would the sickening of world stock 
markets cramp the Roux style? “I do not 
believe so. If they announced that ffli 
atomic bomb would fall on London tomor- 
row there would be long, long queues at Le 
Gavroche because people would wish to 
end in beauty. 

The top of the market is always the last 
to die. There are different kinds of money. 
No doubt we will sell fewer £700 bottles of 
wine. But we will not see a fall in our 
bookings." He says that Britain is a "child* 
where eating is concerned: that the leap in 
standards at the apex is "only the begin- 
ning.’ 

For one restaurant, though, it could be 
farewell, for at the end of my meal with 
Michelin chief inspector Brown I asked him 
how he had enjoyed the show. He became 
crisp and serious. “It's hot in here," he said, 
“and we’re all jammed (dose together. The 
cooking was careless, not all of a piece. 
That sauce I had was greasy. The chablis 
they gave me was not the year listed. Did 
you happen to notice that? And the service 
was too positive, verging on the aggres- 
sive." He did not look very 

On the pavement outside, as he headed 
back into the shadows, l could see Christ- 
mas lights gleaming. Dazzled by their glare, 
a Michelin star was fading in the dnder- 
biock night. 


The Long View 


Bearing up to a matter of costs 


A READER was alarmed to dis- 
cover recently that the manage- 
ment expenses of her unit trust 
amounted to same 20 per cent of 
its income - an alarmingly high 
proportion^he considered. 

Now, it stands to reason that, 
if equities yield only 4.5 per cent 
in the UK, 3.7 per cent in the US 
and 0B per cent in Japan, figures 
which were actually much lower 
before the market crash, there is 
not much , of a cushion against 
costs. The average annual man- 
agement charge on UK trusts 
alone la now around 1 per cent 
(it used to be 0.5 per cent a few 
years ago), although you can 
argue that this is more in the 
nature of a charge against capi- 
tal than against income. 

And here is the rub, for the 
long bull market, with its juicy 
retums.haa distracted attention 
from the tedious question of 
costs. What does 1 per cent or 2 
per cent matter when you can 
earn 30 per cent or 40 per cent? 
Yet costs do have a detectable 
impact, especially if you are one 
of those nitpicking people who 
insist an comparing investment, 
returns with an underlying mar- 
ket index and refuse to be satis- 
fied by the absolute figures. 

The median UK general unit 
trust has underperformed the FT 
All-Share Index by 1.5 per cent a 
year over the past ten years, 
according to figures produced by 
the Unit Trust Association. Cat 
the other hand, that same 
median fund has returned an 
average 21 per cent a year, 
including net dividend 
income, up to the flattering date 
of October 1, 1987. This com- 
pares with a miserable 8 per cent 
on a building society term 

accounts who is complaining? 

Even after the crash the ten- 
year average annual return is- 
still, at a guess, around 17 per 
cent, but the future looks a 
deal less rosy. In the very 
run a return of more than 5 or 
per cent above inflation is 
unlikely and in the shorter term 

there would be a considerable 
downside if the world economy 
were to move into recession. 


The percentage 
charged for 
managing unit 
trusts is likely to 
come under doser 
scrutiny now the 
euphoria of the bull 
market has gone, 
says Barry Riley 

All this is provoking a great 
deal of heart-searching and bud- 
get-crunching among the invest- 
ment community. Fund manag- 
ers have been riding a very- 
profitable rollercoaster 
upwards, with their incomes 
geared to the level of the bull 
market. In the year to the end of 
September the UK equity market 
rose by more than 60 per cent 
Now the first stomach-wrench- 
ing dip has come - you could 
almost hear the squeals - and 



there could be more 
and tight comen ahead 
the car clatters back to the start 
of the circuit. 

The financial services industry 
is very fond of living off percent- 
ages. When markets are going 
up, as they do most of the time. 
Incomes rise automatically and 
everybody gets paid more - some- 
times much more - for doing the 
same job. The clients rarely com- 
plain because they are doing 
well, too. Everybody is happy. 


•CONTENTS 

• 

Finance: London life cuts back 

VT 

Books: Critics’ dunce 1987 

XVI 

Travel- Albania and its secrets 

IX 

Diversions: Countdown to Christmas 

xm 

Gardening: Scotney Castle after the storm 

xm 

Property: The delights of Herefordshire 

X 


Aria 


XVII Food 
XVI QanMg 
j* Hoar To Spend It 

wl la^Jaui 

XVH 

„ Xifl-xv Fiaparir 
&M* HHX as®* 


XIV 
» 

XV Nm Yak ■ 

K WatdroimHap ■ 

' X TVsadltadto XVW 

XVH Item K 


The crunch comes when mar- 
kets drop Investment managers 
suddenly receive '*' per cent of 
a lot leas. In fact the impact has 
not been all that severe on a 
year-on-year basis, because the 
UK equity market is still a little 
higher than it ■ was twelve 
months agoc but the difference 
between 1968 budgets drawn up 
in, ray, September and the cur- 
rent revised versions will be 
sqvere. 

Financial intermediaries face 
the same problem- Switching a 
client out of a UK unit trust into 
Hong Kong fund a few months 
ago will have earned a fat com- 
mission. Switching bade again at 
lower levels after the crash will 
have been much less remunera- 
tive and the client is unlikely to 
have been very pleased with the 
net result. 

Traditional stockbrokers have, 
been used to surviving booms 
and slumps. Their partners and 
staff have accepted huge varia- 
tions in incomes from time to 
time and have been prepared to 
work all hours in bull mar- 
kets, while taking it easy during 
the slumps. Whether the newer 
breed of securities firms created 
because of Big Bang will prove 
so fteribte is not yet dear. They 
are capital intensive in a way 
that the old agency brokers 
never were. 

That there is plenty of room 
for belt tightening in the (Sty of 
London is not in doubt If cham- 
pagne ban begin to put bp the 
shutters the clients of the invest- 
ment industry will have few 
objections. 

More uncertain are the impll-. 
cations of the substantial paper 
fortunes lost by many senior 
managers in listed companies. 
Six weeks ago their executive 
stock options were worth six or 
seven figures; 'now, with share 
prices ofGT, MAM. or Britannia 
Arrow' halved or worse, they 
may be worth nothing. Will they 
roll up their sleeves or sink into 
x? And there is a real 
that a bear phase, if pro- 


longed,could create instability 
which would certainly not be in 
the interests of users of the mar- 
kets. Dozens of unit trust compa- 
nies face a squeeze which could 
force them into mergers-Jum- 
dredsjnaybe thoussnd&of small 
firms of intermediaries are enter- 
ing the first serious bear market 
they have experienced, at the 
very time that their financial 
affairs are being closely scrutin- 
ised by the new breed of regula- 
tors. 

It is not as though high quality 
investment advice is somehow 
less important or valuable in 
hard times: quite the reverse. 
The theory is that your regular 
adviser or manager will continue 
to provide good service through 
thick and thin, even if his remu- 
neration is scant at times. Well, 
we shall see. 

Certainly fund managers are 
reluctant to approach clients 
with requests for higher fees in 
<UfBtndt. periods when those cli- 
ents have suffered recent losses 
and may be considering with- 
drawing their money to any 
cjme- A demand for extra 
could be the last straw, 
althoughjfor exampl e s any unit 
trusts with newer-style trust 
deeds reserve the right to raise' 
their annual charges (sometimes 
to as high as 2 per cent) subject 
only to giving three months' 
notire to unitholders.they will be 
nervous about doing so until the 
investment outlook seems 
clearer. 

It could be uncomfortable for 
the City but in fact a bum of 
intensified competition will be 
no bad thing. In the absence of 
fancy performance numbers to 
divert their attention, in vestors 

such as m. 

dent will increasingly be 
at the value for money they are 


being offered. 
Whc 


to. knows, lower ch 
might even become part of 
sales message^atiier chan hyped 
up short-term performance, it's 
net only investors who can do 
the saving. 


Credit Lyonnais is 

NOW THE PARENT OF 
CL-ALEXANDERS LAING 
& CRUICKSHANK 
HOLDINGS LTD. 

AS ONE OF THE 
WORLD'S LARGEST 
BANKS, THEY PROVIDE 
US WITH ADDITIONAL 
CAPITAL RESOURCES, 
REINFORCE OUR 
SPECIALIST STRENGTHS 
AND COMBINE SOME OF 
THEIR EXPERTISE 
WITH OURS. 


CLrAlexanders Laing 

&Cruickshank Holdings Lid 



THE INTERNATIONAL SECURITIES HOUSE 




AMBtABEROFIHE 
CREDIT LYONNAIS GROUP 


88 Cannon street. London eoxn «ae 
ItLBPHONE! 01-236 0393 TEUX 088288 


rt ' 


l 




n WEEKEND FT 


Financial Times Saturday November 28 *987 



Everything waits 
on Washington 


FIRST THE great crash, now a 
mood of dazed, traumatised tor- 
por. 

The most remarkable feature 
of the London market over the 
past week has been its very thin 
trading volume. Behind that lies 
continued uncertainty over the 

g obal economic outlook follow- 
g the Black Monday plunge in 
equity values. 

The long-awaited agreement 
between the White House and! 
Congressional leaders on & reduc- 
tion of the US budget deficit was 
announced at the start of last 
weekend. But the anti -climactic 

outcome hardly had London 
traders jumping with excitement 
when they returned to their 
desks on Monday. 

Precisely what was being cut 
was left studiously vague, the 
package appeared certain to face 
strong congressional opposition, 
and President Reagan said that, 
in any case, he would veto any 
resulting "bad' tax changes. All 
of this means that the haggling 
in Washington is far from over 
and uncertainty will continue to 
plague the world's markets, Lon- 
don included, which have come 
to view a resolution of the deficit 
issue as the touchstone for the 
international economic outlook. 

Neverthless, a round of unx- 
pected European interest rate 
cuts helped offset the transatlan- 
tic blues, although Nigel Lawson, 
the Chancellor, made clear it was 


too soon for the UK to consider a 
further reduction in rates- 
The London market also took 
some comfort this week from 
further indications that the UK 
domestic economy is in rela- 
tively good health. 

Monday brought a survey from 
the Confederation of British 
Industry suggesting that manu- 
facturers were confident of 
shrugging off the worst of the 
stock market crash, with capital 
lending expected to rise over 
\e next 12 months, despite the 


London 


more uncertain outlook. Tuesday 
produced a set of trade figures 
which were no worse than the 
market had been expecting. 

This helped produce a two-day 
rally which took the FT-SE 100 
index up 55.7 points to 1689.1 on; 
Tuesday night before dropping, 
away again later in the week. 
Some analysts are now arguing 
that the index is settling down in 
a range between 1500 and 1700, 
and are warning investors not to 
chase shares above the 1700 
leveL 

The markets are also anxiously 
scanning company results, 
announcements for early warn- 
ing signs of trouble ahead and 
had a very mixed bag of figures 
to contend with this week. 


S G Warburg, the securities 
house, which is widely regarded 
as Britain’s best candidate for 
the International big league 
alongside the top American and 
Japanese houses, produced inter- 
ims showing a doubling of pre- 
tax profits to 576.8m. 

This was of somewhat aca- 
demic interest, since the period 
covered was that of the raging 
bull market before Blade Mon- 
day. Still, the improvement 

underscored the promising way 

in which the enlarged Warburg 
group has settled down since Big 
Bang (in contrast to some of its 
rivals) and the spread of the 
business, which should give it 
some cushion in the current 
downturn. 

Sir David Scholey, the chair- 
man, said the group had been hit 
by losses since the market crash, 
but these were smaller than 
those disclosed by Barclays de 
Zoete Wedd, the investment 
banking arm of Barclays Bank 
and another leading contender 
for the international first divi- 
sion. 

BAT Industries, the tobacco- 
based multi-national with inter- 
ests in Insurance, paper and 
retailing, disappointed the mar- 
ket with its nine month figures 
(pre-tax profits up 16 per cent to 
Sl.02bn), though this was due in 
Urge measure to an unheralded 
ana complex treatment of invest- 



ment gains in the light of the 
market crash. 

BAT did warn, however, that 
the turmoil in the markets could 
have a significant impact on its 
results. It is one of the first 
major companies to sound such a 
cautious note - but then BAT Is 
very heavily exposed to the US 
economy. Against that, however, 
tobacco is a traditional defensive 
sector in times of recession 
(thanks to strong cash flow and 
the slow-changing nature of 
demand) while composite insur- 
ance also offers defensive quali- 
ties. The shares stand on a lowly 
prospective p/e of about 7, 
underpinned by a yield of nearly 
5.5 percent. 

Courtaulds, the textiles and 
chemicals group, also saw its 
shares suffer this week when it 
produced its interim figures - 
even though the 25 per cent 
increase in pre-tax profits to 
&102.2m was ahead of most 
expectations. 


Sir Christopher Hogg, the 
chairman, must be rather galled 
by the way the market has 
treated the company since Blade 
Monday. 

After years of painful rational- 
isation he had finally brought 
the City round to seeing the 
group as a strong, diversified 
: business. But in the wake of the 
crash, traditional fears over the 
group's cyclical nature have 
reasserted themselves, coupled 
with concern over its US expo- 
sure, which is in fact not that 


operations, while Allied-Lyons, 
the food and drinks group, is 
spending S570m to buy up the 49 


Meanwhile, life is returning to 
the takeover business. This week 
saw a fresh burst of opportunis- B 
tic stake building anafull -scale per 
bids as predators took advantage bet 
of the much cheaper prices now 
available. 

Plessey underlined its Inten- 
tion to become a world-class 
company in specialised semi-con- 
ductors by paying £30m for Fer- 
ranti's semi-conductor 


per cent it does not aireaay own 
in Hiram Walker, the Canadian 
drinks business. 

RTZ launched an unwelcome 
S2D6ra bid for MK Electric, an 
electrical accessories 
which has been the sul _ 
bid speculation for years. RTZ is 
generally known for mining but 
its industrial interests now 
account few some 60 per cent of 
'profits and it argues that MK 
would make a good fit with RTZ 
Pillar, its building products sub- 
sidiary. 

But RTZ, which amassed 22 
cent of MKTs equity in a mar- 
raid, could still face a rival in 
the form of Legrand, the French 
market leader in electrical acces- 
sories. It quickly snapped up a 
2.6 per cent stake In MK ana Is 
arranging to meet the manage- 
ment. _ . __ 

Martin Dickson 


When 

the 

dancing 
had to 
stop 


EVEN Fred Astaire and Ginger 
Rogers had to break up eventu- 
ally. But yesterday's news that 
Debbie Moore and the Unlisted 
Securities Market are to part 
company must have caused fol- 
lowers of the junior markets a 
brief moment of nostalgia. 

Ms Moore danced on to the 
USM in 1982 when everybody 
who wanted to be a somebody 
was cramming themselves into a 
leotard. Pineapple Dance Stu- 
dios, founded by Ms Moore In an 
old pineapple warehouse in Lon- 
don's Covent Garden, was at the 
forefront of the urge to keep in 
shape. 

Those were heady days. Ms 
Moore, an ex-model, appeared on 
the floor of the Stock Exchange 
in a ra-ra skirt and black tights; 
even overweight jobbers, who 
could not tell a tango from a 
canned drink, were enthused 
enough to push the shares to a 
first day premium of 85 per cent. 

Profits rose by 50 per cent in 
the first annual figures {titer flo- 
tation and the company raised 
&1.5m via a rights issue to buy a 
converted warehouse in New 
York. "Pineapple meets the Big 
Apple" was a gift for headline 
writers. In March 1984 came the 
ultimate accolade - an award as 
Business Woman of the Year 
presented by a government min- 
ister. Nemesis, having waited 
patiently in the wings, now 
chose its moment to seize the 
spotlight. 

Aerobics began to lose popular- 
ity as health experts caste d 
doubts on its efficacy. Ms 
Moore's marriage to tne co- 
founder and finance director, 
Norris Masters, broke up causing 


LAST WEEK’S CHANGES 

The following table shows the changes in the FT 30-share index and its constituents over the past week. The 
FT-SE index is also shown. 


Price 

28/11 

1987 

HW> 

1987 

Um 


Price 

zem 

1987 

HI*h 

1987 

Law 

FT Old Ind 

13882 

*2U8 

19262 

12323 

Gn*4 Met 

402 

+15 

60S 

348 

ASDA-MF1 

164 

*2 

226V, 

14246 

GKN 

272 

+7 

434 

235 

AHM-Lyens 

334 

*4 

471 

290 

Gabsaas 

258 

+21 

389 

227 

BKC 

311 

+3 

436 

269 

Hanson Trait 

129 

+3 

19544 

116 

HOC 

352 

-1 

559 

300 

Hawker SM4 

426 

+7 

630 

377 

BTK 

288 


374 

228 

ICT 

£1049 

+49 

£1646 

970 


438 

+5 

589 

268 

LsotxIM 

494 

-1 

795 

465 

BhcCbdelate 

319 

■46 

S79 

289 

Marks & S 

177 

-4 

28046 

177 

Beats 

229 

■ fw 

329% 

215 

NatWcst Bask 

548 

+15 

794 

498 

BritkbGas 

123V, 

SV, 

2M 

306 

p*o 

500 

+36 

776 

425 

BP 

231 

-1 

416 

238 

Pteaaey 

135 

+6 

258 

127 

BritWh Trieoaro 

214 

-5 

337 

288 

Royal Insce 

383 

+10 

595 

345 

CM Schweppes 

229 

+10 

291 

119 

Tate Sc Lyla 

701 

+58 

944 

560 

Ceartaalds 

325 

-4 

535 

302 

ThamEMX 

541 

+32 

830 

436 

GEC 

169 

+5U 

251 

162 

Tr—thasae 

198 

+M 

286 

171 

Glaxo 

£1046 


£1844 

990 

FT-SE 100 

16SIA 

— 

24434 

M08J 


Mr. Masters to leave the company 
in early 1985. Then in May that 
year, Pineapple announced a- 
first half pre-tax loss of £197,000. 
The shares fell back below the 
issue price. 

Ms Moore had already ' moved 
the company into franchising 
and merchandising in an 
attempt to detach the company 
from the decline in the popular- 
ity of aerobics. "I want" she said 
In 1985 "the Pineapple brand 
name to get as well known 
worldwide as Lee Cooper or 
Levi." 

Help was at hand In the form 
of Peter Bain, brought in from 
the Hawley Group, the diversi- 
fied services group which, after 
buying shares from Norris Mas- 
ters, had amassed a 27 per cent 
stake in Pineapple. 

Over the past two yean. Pine- 
apple has acquired a string of 
marketing services companies - 
Golden Key Promotions, Pre- 
mium Pen, Keymarket Out and 
About and Regent Leather 
Goods. The benefit of those 
became evident when the group 
announced a trebling in pre-tax 
profits to £l^m in the year to 
July I 


ugr 1987. 


lowever, the dance studios 
themselves were left behind in 
the dash for expansion. They 
contributed a loss In each of the 
last three years; and now the 
company has decided that the 
business 'does 


not sit comfortably within the 
enlarged group.” 

That much was expected; what 
was not so widely anticipated 
was that Debbie Moore would be 
leaving as weQ. Yesterday it waa 
announced that she was resign- 
ing as chairman and was pur- 
chasing the original business 
together with the Pineapple 
name. In addition, the Manhat- 
tan building would be sold and 
the New York dance studio 
closed. 

The announcement heralds not 
only the departure of the Pineap- 
ple name from the USM - Mr 
Bain is now searching for a new 
title for the group and wants to 
shift to the main market - but 
rite disappearance of the one few 
chairwomen of a quoted com- 

PB Ms Moore has not been unique 
among top business people in 
suffering intrusions into her pri- 
vate life but she may well fed 
relief at the opportunity to pur- 
sue her career away from the 
attention concomitant with a 
stock market quote. Neverthe- 
less, the cuttings show how pub- 

Deb&ie Moorehaaelf.^tad helped 
make Pineapple such a sought- 
after new issue in the first place. 

As was seen last year with the 
flotation of He Rack and Sock 
Shop, a simple idea which can be 
backed up by attractive visuals 
can be much more successful in 


pulling 

manure 


investors than a widget 
acturer In the West Mid- 
lands. But fashions can change - 
and nothing is less popular than 
yesterday's craze. 

The recent bear market has 
emphasised how quickly corpo- 
rate fortunes can fluctuate The 
watchword for the moment, as 
Geoffrey Douglas of Hoare Gcv- 
ett spelt out in a recent circular 
is "quality, quality, quality." 

The markets have now 
ened sufficiently for new 
to reappear in something like 
their old numbers. This week. 
Pathfinders, a recruitment 
agency providing staff for the 
media-related industries," joined 
the USM; the same time saw the 
dehut of Printedi International, 
an Irish printing company; and 
Video Tape Recording, which 
provides post-production facili- 
ties for the TV commercial 
industry. 

Mr John Banks, the managing 
director and finance director of 
Video Tape Recording, was san- 
guine about the prospects for the 
third tier. "I want to be one of 
the first companies to leap from 
the third to the main market’ he 
said. "In fact, I wonder how 
much future there is for the 
USM". It will be Interesting to 
see how many Third Market 
companies share his view. 


Philip Coggan 


INTEREST RATES: WHAT YOU SHOULD GET FOR YOUR MONEY 



Quoted 
rate % 

Compounded return 
fra taxpayers at 

27% 45% 60% 

Frequency 

of 

payment 

Tax 

(see 

notes) 

Amount 

invested 

E 

Withdrawals 

(days) 

CLEARING BANK* 

- 3.00 . 

3.04 

209 

3-67 

monthly 

1 


0-7 


*L0O 

502 

3.77 

2.74 

monthly 

1 

1.000- 4,999 

5.000- 9,999 

10.000- 49,999 

0 


S.60 

5.75 

422 

3.07 

monthly 

1 

0 


f. 00 

6.17 

432 

3.29 

monthly 

1 

0 

High Interest cheque .™ 

6.40 

6.59 

432 

331 

monthly 

1 

50,000 minimum 

0 


BUILDING SOClETYt 

Ordinary share 

High Interest access . 
High Interest access , 


High Interest access. 
High interest access . 
90-day — 


90-day 


90-day 


5.00 

536 

331 

2.77 

6.75 

6.75 

5.09 

3.70 

7.00 

7.00 

527 

334 

750 

730 

5.65 

431 

7.75 

7.75 

534 

435 

7.75 

7.90 

5.95 

433 

aoo 

&16 

6.15 

4.47 

&25 

8.42 

634 

4.61 


haH-yearly 


half yearly 
half yearly 
half yearly 


1-250,000 
500 minimum 

2.000 minimum 

5.000 minimum 

10.000 minimum 
500-9,999 
10,000-24,999 

25.000 minimum 


0 

0 

0 

0 

0 

90 

90 

90 


NATIONAL SAVINGS 

10.00 

730 

530 

4.00 


__ 10.50 

8.04 

6.06 

4.41 


1030 

737 

5.78 

420 


7.00 

7.00 

7.00 

7.00 


7.00 

7.00 

730 

7.00 

General extension 

631 

631 

631 

631 


yearly 
net applies 
not applies 
not applrc. 


5-100,000 
2,000-100,000 
ioo-ioo, obo 

25-1,006 
20 - 200 / 


month 


30 

90 

90 

8 

14 

a 


MONEY MARKET ACCOUNTS 
Schroder Wagg 


Provincial Trust , 


621 

6.77 


639 

6.98 


431 

5.26 


330 

3.83 


monthly 

monthly 


2,500 minimum 
1,000 minimum 


BRITISH* GOVERNMENT ST0CK§ 

5pc Treasury 1986-89 — ~ 

8pc Treasury 1992 

10.25pc Exchequer 1995 

3pc Treasury 1990 ... 

3pc Treasury 1992 

Index-linked 2pcf — 


730 

631 

539 

4.42 

half yearly 

4 

- 

822 

6.62 

535 

3.93 

half yearly 

4 

- 

930 

632 

433 

334 

half yearly 

4 

- 

6.67 

531 

524 

4.77 

half yearly 

4 

- 

6.95 

6.06 

5.46 

4.97 

half yearly 

4 

- 

7.17 

632 

626 

5.95 

half yearly 

214 

“ 


•Lloyds Bank+Hallfax 90-d*y; immediate access for balances over £5,000.* Special facility fw extra £5,000 §Sa 
percent inflation rate. 1 Paid after deduction of composite rate tax. 2 Paid gross. 3 Tax free. 4 Dividends paid after 


SourcerPhllllps and Drew, 1 Assumes 43 
deduction of basic rate tax. 


And now for 
the big guns 


EARTHS HAKERS, 
ilrant, do 


past, present 
orain ate next 
of pending results and 
progress reports. Some are obvi- 
ously cyclical; others less so. 

"louse, with its col- 


and aspirant, 
week's list of pi 


lection of property, construction, 
shipping and oil interests, has 
moved from stock market popu- 
larity to disdain twice in the pest 
decade and seemed to be 
up for a third time before 
Monday. 

It reported flat profits a year 
ago and a drop of a quarter to 
S54.1m pre tax at the half-way 
mark last May, although it 
pointed out then that an under- 
lying improvement was masked 
by the absence of investment 
profits this year. 

However, analysts are expect- 
ing a resumption of earnings 
growth on Monday, led by prop- 
erty and backed strongly by the 
other divisions. There is a range 
of forecasts between S150m and 
168m far the year against 5146m 
in 1985-86, with hopes of a surge 
to 5220m next year. 


Results Due 


GEC (Interim, Tuesday) was a 
little ahead of Trafalgar House in 
the stock market recovery 
stakes. Before mid-year there 
was a strong party in favour of a 
ndamental re-rating after five 
years of underperformanoe in 
share price team. 

Its end -June decline of 6 per 
cent in pre-tax profits to 5668m 
was soon overtaken by 4456m of 
US takeovers, the 5600m Systran 
X merger in UK telecommunica- 
tions and other unmistakeable 
signs of Lord Weinstock going 
into high gear. Analysts are 
looking for a first half out-turn 
or between £290m and &820n> 
before tax, against 5275m at this 
time last year.* 

A latter-day giant for the stock 
markets, ana an ogre for some, is 
Saatchi & Saatchi, the largest 
advertising agency grouping in 
the world. Saatchi doubled its 
half year profits in May after a 
73 per cent jump in 1985-86, 
then spoiled it all by tentative, 
and rebuffed takeover 
approaches to Midland Bank and 
merchant bankers HOI Samuel in 
mid-September. 

It has said since then that Its 
ambitions in financial services 
are distinctly long terra and 
aimed at fee-based services, 
interpreted as the high margin, 
advisory and consultancy aspects 
of banking. 

This may do something for the 
shares, which had their own 
black days in September, a 
month ahead of the rest of the 
market. But they are not finding 
it easy to recover. Projections for 
the current year are being 
trimmed given that 50 per cent 
of the group's earnings come 
from the US. In the meantime, 
analysts are expecting 5U7m 
from next Wednesday's results, 
up from &70m in the previous 
year. 


The same day brings interims 
from the Argyll Group. Argyll 
has had a hectic couple of years, 
losing the battle feu- Distillers in 
1986, winning Safeway ‘s UK 
supermarkets in January and 
then opting to take 590m of reor- 
ganisation costs associated with 
the Safeway acquisition against 
pre-tax profits in the next four 
or five years. 

The bulk of these charges are 
expected to hit this year. Exclud- 
ing them, half year profits could 
be 570m to 577m out of an 
expected total of 5170m to 
5178m before tax, rising to 
5216m before exceptional next 
year, 

Thursday’s collection includes 
prelims flora Hanson, not noted 
for losing its takeover bids. Han- 
son took the Imperial Group for 
S2.0ba .last year, fallowed ft up 
with, the Sl.7bn acquisition of 
Kidde in the US this year and 
was a rumoured contender for 
the Midland Bank in September 
before the market fell apart. It Is 
expected to report pre-tax profits 
of 5725m against a reported 
5464m for 

Now, analysts are mulling over 
prospects for the US economy, in 
which Hanson is deeply 
involved. That could shade esti- 
mates for the current year, 
where the more conservative 
observers have revised their esti- 
mates down from 5830m pre-tax 
to 5780m. 

Along with the movers and 
shakers a clutch of other big 
names in brewing, food and dis- 
tribution will report figures next 
week. Allied-Lyons, which last 
year fought off a SLSbn lever- 
aged hid from the Australian 
Elders IXL, brewers of Fosters, is 
expected to lift its half year prof- 
its from 5148m to 5190m next 
Tuesday, while Bass, reporting 
full year results on Thursday, 
should rise from 5310m to 5356m 
before tax. 

Polly Peck (results Tuesday) is 
expected to snow staying power, 
rather than the mercurial image 
which has led to disappointment 
in the past. A rise from 570.4m 
pre-tax to between 580m and 
S83m is said to be on the cards. 
Maybe there are lessons to be 
learned from Christian Salvesen 
(interims Wi 

along now in food 

and industrial services after a 
glorious century of whaling and 
some ill-starred diversification 
ventures in the 1960s and early 
1970 b. 

Tate A Lyle's results on Thurs- 
day should give the market 
another chance to lode at the 
disengagement from S & W Ber- 
isford, improving prospects far 
world sugar and longer term 
hopes for the artificial sweet- 
ener, sucralose. In the meantime, 
profits are expected to be up 
from 58L5ra to 590m. before tax. 

Other names in next week's 
list include interims from Color, 

Norcros, Allied Colloids and 
Hogg Robinson on Tuesday, and 
from the 600 Group, the Royal 
Bank of Scotland and Johnson 
Matthey on Thursday. 

William Cochrane 


RIGHTS ISSUES 

AptM Flnlnpipliiri n in ralirr f H **"■ “it r 
at 300p. 

Bio Isolates Is to raise £650,000 via a two-for- 
nine rights issue. 

North Sea Assets is to raise £4.8m via a two- 
for-one rights issue at 20p. 

OFFERS FOR SALE, PLACINGS AND 
INTRODUCTIONS 

BOS Group nW to join the USM nert year. 

Mtyne Nfcihssis obtaining a listing on the L o n d on Stock Exchange 
via an introduction. . 

Pwhfiadera is joining the Usm vna placing. 

Printech International is to be Bated on the USM. 

Video Tape Rrtotfingi* joining the Third Market in a placing. 


COMPANY NEWS SUMMARY 

TAKE-OVER BIDS AND MERGERS 


Vklac* 

kUyw 


Mb'* «riu 
ttf 


Aflebone 5 Son 
BmuH (CD.)I 
Brit. Caledonian 
Brawn (M.)? 
Elect. Rentals 
ftUwf 


83 
455.6 
405* 


Hill: 

IntLI 
MJLL 
McLeod Rnssel 
Katdifle fods. 
SanHMftimt 

Storehouse 

Ted 

Wborae&Kxt 


Men In la I«mi mi 
120* 116 
646.6 6t 455 
721 

645 
78 
445 
380 
550 
800 
139 
590 
379 
113 
178 
253 
256 
86 


81 
144 
5SQ*§ 
4058 
105 

isot 

280 

260" 

109, 


% 


97 34.88 

648 87.09 
. 147.00 

715 163^4 
55 246.78 
350 457.42 
300 14.00 
425 104-2? 
684 777.00 

219 245.89 
550 206.49 
385 48-29 
138 833 
137 38.97 
349 l.lZbfl. 

220 29.64 

91 13.08 


Aria E ra ope 
MvAkmjs 
Scot 5 M»u unfit 
Cl— Ida 

da MW 

Bra. 



(CBL) 

JTran * Fkth B 


•All ert offer.tCash altenratire. ♦ 

sbradyheld. J Uncowttdoaal. -ntared « 27/ll/87.At 

yHfM sion. Shares and cash. ^Rdeated to NAV to be diuiminrit 

VLaw stock. ASaspeode 


PRELIMINARY RESULTS 


<_ Y r "-sir 

per mr+mn W 

3.2 (2.9) 3-2 (32) 


Camotedz 
Carroll Inds 
Chrysalis 
Cosalt 
Dtpfcma 
Greenafi Whit 


Aug 

Sept 

June 

An* 

Oct 

Sept 


Humberside Elec June 
Kwik Save Aug 
Mcfeod Roraell Sept 
MKPC Sept 

MurlaadACe Sept 
Redpsth Ind Sept 
TMD Aug 

TSB Channel Oct 



$13,030) 

(5.310) 

(1.080) 

<11.858) 

(35.330) 

(350L) 

(41,750) 


ft) 

( 12.0 


10 

17.1 a 
13 j 4 (82.1) 
16.7 €13.1) 
19.6 (18.8) 
0.1 |l.6> 


2.1 

7.8 

7.0 
4.5 

6.0 

6.0 


<0.31 

(7.5) 

(5.6) 



25,400 

885 

6,100 


INTERIM STATEMENTS 


Orapray “S* '"SUT 

nrfatH 


Alphameric 
Authority Invest 
BAA 

Bassett Foods 
BAT Industries 
BET 

BPB Infantries 
British Telecomm 
Cable A Wirriess 
Cambridge last 
CCA Galleries 
G rann y OH* 
Chamber lain Phipps 
Chancery Sec 
Chase Property 
ContaaMs 
Cropper James 
Crews Eyeglass 
CaHens 
Dawson Inti 
DDT Gram 
Debater Groap 
Downiebrae 
Edbre 
EMAJP 

Erskfne Han. 
Fairbriar 
FH Babcock 
GhnarGmf 
Hambros 

HraflaaStandCB 
Henettmas 
Hffl Ergeoem 
Hogg Robinson 
Brahes Foods 
Hunti ng don Inti 
Imry Inti 
Kennedy Sntie 
Magnet 

Marshalls HsHfhx 
Manna Thompson 
Mercury Am 
M onks Inv Tat 

■ Mercsn 

1 Textile 
Penny A Giles 
Personal Assets Ibt 
Powell Dnffiyn 
Ptowcnoeea 
Prope rt y PtnereUps 
“ Inti 


Sept 

Oct 

Sept 

Oct 

Sept 

Sept 

Sept 

Sept 

Sept 

Sept 

June 

Sept 

Sept 

Sept 

g 

48- 

Sept 

Sept 

June 

Sept 

Oct 

Sept 

Oct 

Sept 


806 (1.730) 

1*380 (446) 

136.000(100.640) 
2.120 (1,830) 

l.OZbn 1 86,000) 
92.100 (41.445) 
90,900 (69.300) 
1.12bn (I.Obn) 
165.000 (160,000) 
2.770 (2.1 

203 
2.800 
3.370 
1,620 
9,500 


,610) 

ga. 

,2,410) 
1,040) 
5,900) 
102200 (76,650) 


11 , 100 ) 

(5,600) 

33,000) 


lot 

Sedgwick 
Sefcenlntl 
Transcoa Sere 
Trkcntrol 
VBaoplant 
Walker A Staff 
WarborgSG 
York Trust 
Yenghml Carpets 


Jc 
Sept 
Sepc 
Sept 

fept 

Sept 

Sept 

Sept 

Sept 

Sept 

Sept 

Sept 

Oct 

Sept 

Sept 

Sept 

Oct 

Sept 

Sept 

Sept 

Sept 

Sept 

Oct 

Sept 

Sept 

Sept 

Sept 

Sept 

Sept 

Sept 

Sept 

Sept 

June 



102.200 (76,65 

■r |»> 

2.600L 

19.000 
111 
161 
12 
900 
8,450 
45,960 (33,000 

a m 

514 

&“° 

348 
156 
8.070 
2,010 
8,930 
2,840 
682 
25,040 
7,100 
6.620 
23.900 
2,430 

1.200 

I. 140 
799 
135 

II. 540 
6,950 
846 

5.200 
75,300 
676 

140.000 (73.: 

93.200 
848722 
6,640 
2.I00L 
3,780 
128 

76,800 
3,250 
82 


2.4 




10 


543) 
.780) 
5,510) 
5,870) 
7,600) 
1,798) 


51) 

23) 

81) 



5-2 



(Flnres hi parentheses are for the cmrespomUag 
*Dhideada are shown net pence per share, except 
Indicated. L s loss, third gnrterflga£s. 


4-2 


Pnfed.) 
where otherwise 


RESULTS DUE 


Company 


Announce- 


.55— ■ 

He* 


Angfla Seciae Homes . 


Berry Trust . 


OrcaprM 

cayfaE 


CXvrdes & London few Tst . 


Hanson TYust. 
Kynocti G&Q _ 
Isstfo Group . 


S3 


Pack. 


Ssstcrt&B 

TsM&Lyte 


Tbwaday 

Tuesday 

Monday 

Wadnsidsy 

IBS? 

SS 

£32* 

Tlsasday 


MxmOmii. 
Msd Cotoids . 


Lyons 


Anglo IMM. 
Aigy* Group. 

Aapnry 

ASdns Bros - 


Monday 

Tuaeday 

Tuesday 


H i mtoahent 
Cator Group 


Cwadon m i 

Cartsaa, Capet, * lecnesfl . 
CasSngs. 


Dr u mmond M 
FMhtanl Qsnwai. 
Frefajata 


zxm 

UlngMonti 

MMlI 


Co. 


Rob.&<M*MoiMMi, 

tepf* — 

inti Morris 

v*« Products 


Jarrts Porwr . 
JsSmsgn Matdisy . 


London Osoudfiss — 
Lwma WiHeMms. 
HMngMi — __ 


Whand Brown. 
Monks & thane. 


Mo nU Wtn ftw Art s . 
Mairemiw Estates — 


war’ 

Tuesday 

Tuesday 

TUOSftay 

Tuaodsy 

JtenS i 

Tthiradsy . 

UUKtay 

TtafWty 
Jjwtey 
Tueaasy 
Thursday 
T»— 0*1 
Tuesday 
Thssdey 

Thursday 

TTMiSsy 

sss? 

Tuesday 7 

nsg 


Northern Securities Tst _ 

OWcs aBsctcoMc Mean. 
Priest Martens - 


Role 6 Nolen Coop 8*t . 

R0<*finwn Sscwttes - 

Rons Bankof 6eottend_ 
ODOQroup 


Tuaeoey 

Tuesday 

Monday 

Friday 

asr 


Huraday 


iScrae Croup BBI 
Owaton Sect Ml , 
^lphook^^^H 


Thursday 


.Tooth* RW- 
UnHocfcHUgs 


Mdsy 

Thursday 

Monday 


4J2 


04 
Z2 
2.0 
1J) 

05 

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12 

ix 

7X 

02 

at 

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0.7 

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03 

IX 

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22 

as 

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22 

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07 

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1.1 

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02 

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23 

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1.1 

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08 

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22 

43 

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7.0 

12 

43 

13 

73 


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2-6 

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43 

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2.T 

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¥ 

23 

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63 

m 


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23 

OX 

04 

07 

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™tr 


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BA 
SJ3 
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13 
43 
13 
23 


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83 

13 


era ahrem net perne per fare end « equated fer any Mansrangtonp 













. '<£ 
*■ r-JjA 

■its 

'. ■>*>{ 
; :■!*•« 
. »>w 1 

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, -^.v 

: 


'..7' 9^3t ,. 


Financial Times Saturday November 28 1987 


WEEKEND FT 01 


MARKETS 


Focus of attention shifts to G7 meeting 


ALL THE signs point to an early 
Christmas. There are, admit- 
tedly. three and a half weeks to 
go in trading terms, but already 
there is a positive winding down 
mood in the air. You have only 
to look at the thin trading vol- 
umes in the main markets this 
week to see that we may a 11 face 
a rather long holiday. 

This past week has been some- 
thing of a trial run. Monday was 
a holiday in Japan, so London 
had to open without its usual 
guidance from the East; Thanks- 
giving Thursday was (as usual) 
snowballed into a long weekend, 
and these days marlcetinakers 
are not inclined to take positions 
without overnight guidance bom 
Wall Street. Broadly static indi- 
ces over the week was the inevi- 
table cautious outcome. 

The week opened with reflec- 
tions on the US deficit-cutting 
package, but no one seemed too 
sure how it was all going to work 
out, or if it would. 

Generalisations apart, which 
particular tax would be raised, 
and where are the precise spend- 
ing cuts? Would the Congress 
actually approve the package 
and, if not, what then ? Back to 
Gramm-Rudman and the £23bn 
across-the-board cuts? 

Yet despite the many ques- 
tions, the prevailing mood in 
most markets was one of relief; 
at least the White House and the 


Congress had. agreed on some- 
thing, albeit not a great deal, but 
there was Just a sniff of creative 
accountancy In the air. StiU,the 
financial markets had waited for 
some five weeks since the Black 
Monday crash on October ID, and 
something was better than noth- 
ing. 

Yet markets and marketmakers 
can be perverse, and generally 

World 

Markets 


dislike being entirely worry-free. 
They always need something to 
focus on and,, poet the long-de- 
layed Washington package, the 
focus shifted to the expected 
meeting of the G7 finance minis- 
ters. When would they meet and 
to what effect 

The Gramm-Rudman legisla- 
tive deadline of mid-December 
seemed to rule out an early G7 
caucus, since few If any of the 
ministers are prepared to meet in 
earnest until they know that the 
US Congress would approve the 
Washington package. 

Mr Nigel Lawson, the Chancel- 
lor, joined his American, West 
Gennan and Japanese colleagues 
in stressing that a meeting would 
make no sense until America' 


was seen to be making a start to 
putting Its own house in order. 

But there was something of & 
pre-emptive strike on Tuesday 
which brought momentary cheer 
to the markets. Concerted Fran- 
co-German action - with the 
Dutch also in tow - to lower 
interest rates finned the dollar, 
but not for long. News on the 
same day of a 4.1 per cent 
increase in US third quarter 
GNP, although much in line 
with expectations, was another 
steadying factor, but again not 
for long. 

While the West Germans may 
(reluctantly) have been trying to 
give a small nudge to the dollar, 
the French and Dutch response 
was seen on reflection to have 
more to do with internal difficul- 
ties within the EMS. 

Significantly, neither the Japa- 
nese nor the British moved on 
Interest rate cuts; indeed, Mr 
Lawson told the British House of 
Commons on Thursday that 'at 
the present time 1 do not think 
any reduction (in interest rates) 
Is appropriate. * 

It all amounted to a holding 
pattern. Individual investors in 
the main (there was inevitably 
the odd bull about, especially cm 
Wall Street mid-week) stayed out 
of the markets this week. 

The occasional rally produced 
a crop of sellers, but marketmak- 
ers’ spreads remained wide and 


FT-ACTU ARIES 
WORLD INDICES 

uss% 

%Qango ohmoe 
ton Jan. 2 *» 

Comtry Oat IS 


Australia -L3 -HIM) 

Austria ’ -7-4 *SL4 

Belgium ‘ +49 -149 

4&S -159 

Denmark +11-7 -7.7 

Prance -UJ -144 

W Germany -Z3J -22.0 

Hong Kong -14J -43.4 

Ireland +SU -329 

Italy -30.7 -1W 

Japan +41.8 -49 

Malaysia -2.7 -329 

Mexico +S2-3 929 

Netherlands -4.7 -8-7 

New Zealand -19-7 -13.0 

Norway +89 -37.7 

Singapore -S3 -83.1 

S Africa +369 -389 

Spain +169 -28.0 

Sweden -19 -42.7 

Switzerland -17.7 -42.7 

UK +209 -15.7 

USA -29 +7.1 

O Tlw Ptaaadal Th— ^bnl*M— Sodon* 
C»> W<ime HertwM.sadl Co LB> 1ICT 

ri»im« of liquidity in the princi- 
pal markets of Tokyo, Wall 
Street and London remained just 
that: in the real trading world 
these difficult days, liquidity is 
more a claim than a reality and 
all but blue chip shares failed to 


find a two-way trading environ- 
ment, and It his not always been 
there even for the blue chip 
.issues. 

Yet if the underlying mood has 
been the same, not all of the 
main markets have acted simi- 
larly. Japan la no longer defying 


gravity, but this week the main 
Nikkei index has been generally 
upwards, closing on the week 
some 2.5_per cent higher at 
23968.62. This reflected - and of 
course also influenced - a 
broadly similar rise over the 
weds in the FT-Actuaries World 
Index. 

For all that, foreign investors 
have been getting out of Tokyo 
as fast as they could since Black 
Monday, and there are few signs 
that the Japanese markets have 
been holding up on the strength 
of individual Japanese investors. 
Brokerage houses have certainly 
been supporting the market, 
apparently buying in for their 
own account, but this can only 
be a short-term process. 

The second block offer of Nip- 
pon Telegraph amd Telephone Is 
successfully out of the way, but 
yesterday brought confirmation 
that the Japanese Government is 
to sell its remaining 34.5 per cent 
(48.1m shares) in the Japan Air- 
line Company (JAL) - at a 39 
per cent discount on the share 
price on December 14. 

The shares will be listed for 


World Index $ Index 

i FT-A World lndexfc i ; ^ V 


trading on Christmas Eve. 
another squeeze on liquidity, yet 
for all that Japanese bulls will 
point to the fact that Tokyo tra- 
ditionally has its year end rally. 
This time, wo? 

Wall Street certainly has been 
marking time. A feeble three-day 
rally faltered on Wednesday, ana 
yesterday's opening after 
Thanksgiving Day was negative 
in miniscule early volume. 

Frontline stocks have recov- 
ered 10 per cent and more since 
the crash, but writers of market 
newsletters are almost univer- 
sally pessimistic. Tarnished 
prophet Robert Prechter did not 
see his forecast of the Dow 
industrial average peaking at 
around 3,600, but earlier this 
week he sounded like a reformed 
preacher, foreshadowing a mar- 
ket gloom and doom in which 
everyone sensible should run to 
cash. *A bear market is a bull 
market in cash* is the new Pre- 
chter sermon. 

The London story has been 
more of the same. Some analysts' 
forecast of a Footsie at or over 
1900 by year end looked more 
than a shade rash this week 
when the FT- 100 struggled to 
hold around the mid-1650/1675 
level, yet forecasts from Warburg 
Securities yesterday looked to a 
10 per cent gain in the All-Share 
index to 925 by the end of next 
month, and with another 125 


FT ~A World Index 
^^TBoilar'lndexil^ 


: VA^102 




'£ i-'i- in.^E ■ - .'.’3 -kSv! m . r- 2 QJj 

October 1987 November 


» 1 


index points in the first half of 
1988. 

Elsewhere, there have been 
few anomalies - Mexico apart, 
where in a single day the stock 
exchange rose by more than 26 
per cent in a flight to dubious 
quality after a collapse of the 
free market peso/US dollar 
exchange rate. 

Continental Europe, where 
changed during the week, was 
fractionally lower, with interna- 
tional investors selling into any 
tentative rally and then finding 
little or no liquidity. 

Australia managed a minor 
mid-week rally on higher bullion 
prices and some eating of con- 
cern over cash flow problems of 


a number of leading companies. 

Yet nothing very much had 
changed over the week: It ended 
just as it began, with worries 
over the US currency. Friday 
opened In London with another 
record of recent times - the dol- 
lar fell to $1.80 plus against ster- 
ling, its lowest rate for more 
than five years. 

Despite marginal Bank of 
Japan intervention, it was much 
the same story against the yen. 
Moreover, it is now touch ana go 
whether Santa Claus might not 
get in ahead of the next G7 
'meeting! 

Dominick Coyle 


Conflict between equity and bonds 


AS EVERY schoolboy knows, 
‘Wall Street* is not a single, 
monolithic market. The point is 
so obvious that it is easily forgot- 
ten. But there are times when it 
is vitally important to remember 
that all the financial markets do 
not see the 1 outside world 
through the same telescope. 

Never has this trivial observa- 
tion been more relevant than It 
is today. The point is not that 
Wall Street consists of thousands 
of Investment firms and millions 
of individual traders, all with 
their own particular attitudes to 
risks and rewards and different 
perspectives on the future. In 


rung billion dollar portfolios and 
thirty-year-olds posing as Invest- 
ment 'gurus,* the herd Instinct is 
a stronger farce in the financial 
markets than it has ever been 
before. 

However, even if unreasoning 
herds of bulls and bean rule all 
the financial markets, each mar- 
ket can provide a habitat for its 
own particular species of these 
wild and gregarious creatures. 
While everybody recognises in 
theory that the interaction 


between the bond and equity 
markets is profound and au-em- 
bracing, in practice they operate 
in two quite separate worlds. 

In the typical Wall Street sky- 
scraper, the equity and bond 
trading floors are separated by 
several storeys, sometimes not 
even, linked by the same eleva- 
tors. At times this can allow the 


Wall Street 


two markets to charge off in 
opposite directions, based on 
mutually contradictory expecta- 
tions about the economy, when 
that happens something eventu- 
ally has to give. 

Tension of this kind marked 
the long prelude to the October 
crash. When bond prices col- 
lapsed in March and April this 
year, it became apparent that at 
least half of Wall Street did not 
share equity investors’ faith that 
the US and world economy had 
entered a golden age of never 
ending non-inflationary growth. 
In the aftermath of Black Mon- 
day, however, a far more serious 


contradiction began to emerge. 
The collapse of stock prices fed 
immediately to one of the big- 
gest rallies the bond market had 
ever seen. 

The reason was that for a few 
days after the stockmarket col-' 
lapse everybody began to believe 
that a recession was now likely 
to begin within the next six to 
nine months. That recession 
could possibly be avoided, ran 
conventional wisdom, but only if 
the Fed pumped money into the 
economy without restraint. 

The risks of this were viewed 
as minimal, because the crash 
was such a powerful deflationary ■ 
force there was now no serious 
danger of faster inflation next' 
year. While that view prevailed, 
it was possible to beueve that 
there was little risk of a further 
collapse in the stockmarket from 
the trading range of 1800 to 2100 
it established over the last 
month. Even after the crash, 
price-earnings ratios in the 12 to 
17 range assumed further 
advances In corporate profits.. 
But the sharp drop in long-term 
interest rates, the falling dollar 
and easy money policies from 
the Fed seemed to provide ade- 


quate guarantees that profits 
would continue growing, with no 
risk of a serious recession for at 
least another year. 

With fears of inflation effec- 
tively scotched, equity investors 
persuaded themselves that looser 
monetary policy and a lower dol- 
lar would almost certainly suc- 
ceed in averting -a recession and 
provide underpinning for stock 
prices. 

It was on that premise that the 
market succeeded in regaining 
its composure and establishing 
its current trading range of 1800 
to 2000 on the Dow Jones Indus- 
trial Average. This range, which 
implied price-earnings ratios in 
the 12 to 17 range, still assumed 
advances- in corporate profits 
next year. But with long-term 
interest rates falling towards the 
8 per cent mark and in the 
absence of a serious recession, 
this level seemed reasonable 
enough, provided the Fed's easy 
money policies were maintained. 

Over the last two weeks, how- 
ever, a major flaw in this analy- 
sis has emerged. The bond mar- 
ket did not share the stock 
market's assumption about 





Dow Jones 
Industrial Averagi 





"'I 


Sep 1987 Oct 


avoiding a recession. In pushing 
long-term interest rates as low as 
8.45 per cent at the beginning of 
this month, the bond market was 
signalling expectations that the 
stockmarket collapse would 
cause a major slowdown In the 
US economy. As the first tenta- 
tive indicators of economic activ- 
ity since the crash have been 
published, bond investors have 


begun to realise that the US 
■economy is stronger than they 


To make matters worse, politi- 
cians in Washington have 
dashed the bond market’s hopes 
of giving the economy a further 
shove towards deflation with a 
big cut in the budget deficit. The 
upshot has been a major setback 


in the bond market, with 
long-term interest rates pushing 
above the 9 per cent barrier on 
Tuesday this week and contin- 
uing to rise steadily since then. 

The consequences of this for 
equities are ominous. Bond 
investors are again beginning to 
worry about inflation - and soar- 
ing commodity prices, especially 
In dollar terms, are adding to the 
alarm. Some bond investors are 
starting to fear even a mild 
recession might not be enough to 
check the inflationary excesses 
that have been building up in 
the US economy as a result of 
the unchecked growth of govern- 
ment, corporate and private bor- 
rowing in the last seven years. 

The stock market, by contrast, 
expects a mfld recession at worst 
next year and is gradually 
becoming convinced that no 
downturn Is likely. The danger is 
that if the stockmarket ’s expec- 
tations of continuing growth 
next year look like being real- 
ised, the bond market will fall 
considerably further. 

Mr David Hale of Kemper 
Financial Services recently sug- 
gested that 'bond yields would 
probably be rising to around 11 
per cent, if it were not for the 
expectations of recession engen- 
dered by the crash. At the least 


such a rise In interest rates 
would remove one of the under- 
pinnings supporting the present 
trading range in the stockmar- 
ket. 

On their own, higher interest 
rates might not be sufficient to 
induce the possible recession 
which the stockmarket has 
begun to forget about. But 
income from stocks would once 
again begin to look unattractive 
relative to returns on bonds. 
What is more serious is the possi- 
bility that the bond market's 
forecasts about the strength of 
the US economy might be 
wrong. 

By over-reacting to the indica- 
tions of robust growth which 
may continue for the next few 
months, and forgetting about the 
inevitable lags between the stock 
market crash and its deflation- 
ary consequences, bond investors 
could paralyse the Fed in its 
attempts to keep growth going 
and turn initial expectations of a 
recession into reality - a reality 
very few equity investors are yet 
prepared for. 

Monday 102898 + 9.45 

Tuesday 196893 + 40.46 

Wednesday 104895 

Thursday closed 

-Friday 

Anatole Kaletsky 


the Stockmarket- 











IV WEEKEND FT 


Financial Times Saturday November 28 1987 



Fiona Thompson asks who would 
have won during the crash 

The race that 
beat the bears 


"A VERY difficult question," said 
Allan Henderson of Edinburgh 
stockbrokers Bell Lawrie, which, 
with its £14,098 profit, bore the 
ignominy of coming bottom in 
last year's Holbom Great Invest- 
ment Race, where six teams of 
fund managers competed to raise 
money for charity. 

The query was: What would 
you have done had the race still 
been underway when the world 

stock markets crashed? 

As it was, the year-long race 
ran through a roaring bull mar- 
ket and raised £779,856, each 
team investing a portfolio ini- 
tially worth £35,000. The contest 
ended on September 23, just 25 
days short of Black Monday, 
October 19. 

The Bell Lawrie team had 
managed its race portfolio as it 
would for a private client want- 
ing high growth: pursuing a cau- 
tious policy of investment in UK 
equities. It suffered when, mid- 
way, it sold some shares to 
chance its luck in the traded 
options market, with no great 
success. 

“if the race had been, say, two 
weeks short of the finish, we 
would have sold the lot and 
placed the cash on deposit Any- 
thing else would just nave been 
gambling,” said Henderson. "If 
there were two months to go, we 
would have considered going 
back into quality equities - such 
as Cannon Street Argyle Group, 
Beecham Group, Scottish & New- 
castle Breweries, Racal - with 
convertibles as a slight hedge." 

- fidelity, the fund management 
group, came second in the race, 
making £210,346, with its tactic 
of opportunistic investment in 


half. ^ 

“By then, we just wanted to /.tf, 
hang on to the money made,” 
said Anthony Bolton, "and this v/fo, 
would have been our position in 
the crash. Our policy throughout " 
had been to keep most of our 

portfolio in cash - so we could 

.... . — 

we 



equities, mainly in the Far East. 

After quadrupling the value of about what his team would have 


"On the Monday and Tuesday 
of the crash we probably 
wouldn’t have done anything, 
just watched. Then 1 like to 
think we would have closed up 
shop and sold into cash. The 
sums achieved were so big, rela- 
tive to what we’d started with, 
that we felt preserving the 
money for charity was vital" 
MesseL the London broking 
house which is part of the Shear- 
son Lehman group, would also 
have adopted a wait and see 
approach m the early days of the 
crash, according to David 
Hunter. 

“When you have a shock, you 
must let the dust settle. We 
would not have done anything 
for two weeks, at least until the 
BP issue was settled. We were 
already fairly liquid anyway.” 

Messel came fourth in the race, 
earning £48,586, with a portfolio 
split between equities and finan- 
cial futures. Overall, it pro s pered 
in futures, though it did mis- 
judge the pound in the summer. 

“u the race was still on, we 
would be buying Australian and 
Canadian gold shares, which are 
now very cheap. I think the dis- 
harmony between central bank- 
ers is such that they will have to 
return to the gold standard." 

Peter Clark at London stock- 
brokers Hoare Govett is adament 



the half way 

stage, it ad 
vative approach for the second 


its portfolio by 

opted a more co riser- two weeks left to run, we would 


done. ‘If the race had just had 
two weeks left to run, we would 
have sold everything on the day 


Trevor Pollen: sell 
and boy bock 

the market crashed and put it on 
deposit. We wouldn’t have tried 
to be clever and hold, we 
wouldn't have waited for a 
bounce. 

Hoare came third with 
£143,502. After a slow start it 
surged in the second half with 
highly speculative equity invest- 
ments, particularly in small UK 
pro p e rt y companies and the sec- 
ondary market in Australia. 

“We didn't hold that many 
stocks by the doting stages," said 
Clark, but said that if the end of 
the race had stiB been some way 
off when the market crashed, 
"we would have trimmed our 
portfolio and bought some ‘put* 
options as an insurance policy.” 


FINANCE & THE FAMILY • 


Cheaper 

home 

loans 

CHELTENHAM A Gloucester 
Building Society threw a new 
figure into the mortgage 
melting pot -this week by deck- 
ing to cut its borne loan rate by 
1 jL5 to 10 per emit. This is the 
lowest figure announced by any 
building society in the current 
round of home loan reductions. 

However, Cheltenham A 
Gloucester has delayed imple- 
menting the new rate for both 
new and existing borrowers 
until January 4* 
other mortgages are being cot 
from December 1. 

Last week Abbey National 
reduced its rate to 10.1 per 
cent, but several other buHomg 
societies are following the Hali- 
fax lead in going down to 10.3 
per cent. Nationwide Anglia, 
the third biggest society, 
Bradford A Bingley, Cheshire 
and Town A Country have aO 
plumped for 10.3. However, 
Bristol A West, Britannia and 
National & Provincial have* 
moved to 10.26 per cent, so it 
may be some time before a com- 
mon standard mortgage rate 
emerges. 

The United Bank of Kuwait 
has reduced its variable home 
loan rate to 10 per cent and its 
Libor (London . Interbank 
Offered Rate} mortgage is likely 
to be even cheaper when it m 
next fixed on January 1. 

rjnnM i r.iiwniii and London A 
Manchester have both cut their 
rates to 10-2 per cent, but the 
most competitive so far remains 
Sumitomo Bank at 9.9 and the 
Mortgage Corporation at 9.95 
per cent. Allied Dunbar Home- 
loans are all down by one per 
cent and you can now secure an 
interest-only mortgage of over 
£76,000 at a rate of only 9.75 
per cent. 

Meanwhile the bad news Is 
that both Abbey National and 
the Halifax have moved swiftly 


Kenichi Fukuhara at Noznura, 
the largest securities house in 
Japan, invested only in blue chip 
equities in the Tokyo stock mar- 
ket during the race, produdn 
£17,095. He says had the eras 
happened mid-race he would not 
have sold any of his equities, 
which were mainly electrical 
utilities and steel stocks. 

His cash position was quite 
high, about 40 per cent, towards 
the end of the race and Fuku- 
hara says he would have used 
some of this buying stocks with 
a high foreign (non-Japanese} 
ownership, such as Yamanoucm 
Pharmaceuticals or Itqyokado, a 
retail stock. 

Trevor Pullen of Prudential 
Portfolio Managers, the soaraway 
winners whose speedy dealing in 
future s and speculative equities 
trading yielded £346,229, said his 
team would not have sold its 
equities if the race were 

two weds off. 

"But, if it were longer; weak- 
ness in price would have forced 
us to liquidate." However, this 
itself could have brought prob- 
lems. "We would have tried to 
liquidate, but some of the stocks 
we were in were so thin that we 
would have been caught.” 

However, the team’s mastery 
of the futures market would 
have allowed it to hedge out the 
market risk, says Pullen. "We 
would have used our expertise to 
sell and then buy bad." 

The starting date of the new- 
Great Investment Race, and the 
accompanying FT Readers' Race, 
will be announced shortly. - - 


Eric Short looks at post-crash mortgage options 

Fixed rate 



WHEN I took out my Hist mort- 
gage nearly 30 years ago from a 
fife company, the interest raw 
was fixed throughout the term of 
the mortgage and I had the 
choice of repaying the mortgage 
by either a non-profit endow- 
ment or a fuR with profits con- 
tract. 

However, daring the Interven- 
ing period, the tow cost endow- 
ment has not only appeared on 
the scene, but has taken over the 
traditional endowment mortgage 
market. Rising Interest rates 
brought to an end the fixed rate 
t hr oughout the term. 

For the uninitiated, a non- 
profit endowment is one where 
the life company guara ntees to 
pay a fixed sum at maturity or 
earlier death, but the policy 


holder receives no share what- 
ever in the Investment and other 
profits of the fife company. 

Mortgage arrangements such 
as this were, I thought, as dead 
as the Dodo. But I was wrong. 

This week I received a press 
release from Wait-Martin, a 
financial planning firm baaed in 
Kingston, Surrey, offering a new 
risk-free endowment mortgage - 
a scheme that was exactly the 


cept eat into the open. House* 
buyer* using the endowment 



Subsequent Inquiries showed 
that fixed rate mortgages, repaid 
by non-profit endowments, have 
been available for certain 
sources throughout the years, 
though keeping a vary tow pro- 
file. 

However, the recant stock mar- 
ket coOapee has brought the con- 


NET MONTHLY PAYMENTS FOR A BASIC RATE TAXPAYER 
AGED 34, £30,000 MORTGAGE, OVER 25 YEARS AT 10% 

Non-Profit L aw Cost Repayment 

Endowment Endowment 
£ £ 


Interest payments 

Endowment 

premium 

182.50 

18250 

Interest & Capital 

22036 

6&50 

37 A0 

Life cover premium 

Bjza 

Total Cost 

2SL00 - 

22010 

Total Cost 

22064 



t mmU to CMUl mi d* mtMy 





Saver. EapvSar. 


over the poatibUty uf their con- 
tract not bring aide to repay the 
mortgage. 

A recent article in these col- 
umns showed that such rears 
were vwy much premature. But 
according to Michael Martin, a 
Of : Watt-Martin, some 
iyert are seeking com- 
plete guarantees from their 
endowment contract and axe 
attracted to the idea of an inter- 
est rate fixed throughout the 
trim of the mortgage. 

Eagle Star Group Is one source 
of such endowment mortgages. 
Currently, Its fixed rate Is 10 per 
cent, not competitive in current 
conditions when variable rates 
are getting dawn to this level 
and likely to fall further. 

With interest and mortgage 
rates tending downwards, the 
cost of such mortgages looks 
unattractive compared with 
with-prafit low-cost endowments 
and uie normal repa y me n t. But 
the rate, which Is determined by 
long-term gilt rates, is under 
review. 

However,- for hou Be buyers 
looking for ultimate security, the 
•price to be paid is illustrated in 
the accompanying table. 


Back to bonds 


The stodt market 
crash is likely to 
change UK investors’ 
attitudes to hoods, 
reports John Edwards 



_ SUDDENLY, surprise surprise, 
to cut the rates paid on invest- bonds are back m favour; This 
moits. week, two groups who were in 

John Edwards toe forefront of selling equity- 

abased unit trusts to the public 
f have decided that, perhaps, 
bonds are a more appropriate 
vehicle now for your money. 

Barry Bateman, managing 
director of Fidelity, which is 
launching an International Bond 


charge of 5£5 per cent, plus 
annum fees of one per cent, is 
high for a bond fund, which in 
any event is not tax efficient for 
a UK authorised trust. . The 
unfranked Income, which is sub- 
ject to corporation tax, cannot be 
passed in the same way as it is 
with franked income, such as 



equity dividends. 
Prudent 








ortfolio is 
complete without bonds. 


The recent fells in world 
equity markets have really shown 
die importance of a balanced • 
portfolio which should include 
some lower risk securities. 

Whilst equities have, in the 
long-term, generally produced 
higher returns, there are periods 
when reassessment of your 

investment strategy is essential and fixed interest securities — 
Le. bonds — can be used successfully to complement your 
equity portfolio. 

We believe such a time has come and so, this weekend, we 
have launched the new Fidelity International Bond Trust. 

The aim of the Trust is to provide investors with a high 
level of income, plus long-term capital growth from an 
international portfolio or Government bonds and other 
quality fixed interest securities. 

The missing dement. 

Whereas in most other countries — like the U.SA., Japan 
and in Europe — investors have always considered bonds to 
be an integral part of a balanced portfolio, U.K. investors 
have all but ignored the benefits of bonds to their cost 

Remember, bonds not only offer a high level of income 
(73?in the case of Fidelity International Bond Trust) but 
iso real prospects of capital growth if interest rates continue 
their downward trends. With an international portfolio of 
bonds, currency gains may also be achieved. 

Since equity markets tell six weeks ago, professional 
Investors around the world have been increasing their 
exposure to bonds. We expect this to continue over the 
coming months as more investors recognise the advantages 
of taking a more balanced approach to their investments. 

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Fixed offer price 
fiM-ONE WEEK ONLY. 


Fidelity International Bond Trust 



To allow the Manager of the 
j Trust to capitalise fuUy on the 
current market volatility and the 
opportunities which exist for 
bonds at this time, Fidelity 
International Bond Trust will 
be available at the fixed offer price of 25p per unit for one 
2uee&oft/yuntil4th December 1987. 

Buy by ’phone today. 

If your portfolio doesn’t indude bonds, don’t delay. 
Now’s die time to act to make your investments work 
harder. To invest in Fidelity International Bond Trust, 


much you should invest Alternatively, simply send the 
coupon, together with your cheque, to Fidelity or call 
Fidelity today to discuss this new investment opportunity. 

,so 



them can go down as well as up. 

-Estimated starting gross yield at the launch offer price of 25p per unit 


OPEN 7 DAYS 

9AM -9PM 


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To: HdeBtylnve stiaeQtSeATces Limi ted, P.O.Box 80, Tonbridge, KentTN91DW. 
i wish to invest I £, _ _ J lnrtdetitylooenaariooal BondTVust ar the 

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rinihMdleMapll 

Surname Mr/Mrs/Miss. 

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FustName(s) 

Address. 


-Date_ 


■ Postcode. 


ms 


itial Holbom ia adopting 
a different approach., ft is 
launching two new managed, 
single premium investment 
bonds which until the crash 
were considered to. be infsior to 
unit trusts because of the tax 
liability. 

Now tiie ha. chanj^d 

in view of the advantages of 
managed bonds in being aide to 
invest in non-equity 


Canadian 

venture 

THE WORLDWIDE stock market 
crash brought marketing 
operations in the unit trust 
industry to a shuddering hah. It 
takes a brave marketing man- 
ager to launch a new trust under 
present conditions. 

However, the Canadian Impe- 
rial Bank of Commerce is not 


Trust today, forecasts that after 
the stock market crash investors' 

attitudes will rhany towards v ,. w r — j _ — nr — «, 

bonds. He notes that in the US, well such as property, fixed launching a new fund on 
me 36 per interest securities andreak. Monday - a UK Growth Fund. H 

The Pro's two funds, Holbom * entering the authorised unit 


bonds re pre s en ted some 36 per 
cent (precrash) of p ri v a te inves- 
tors* portfolios, whereas in 
Britain the percentage was only 
3 per cent. 

He adds that the possibility of 
a slowdown In world growth, 
falling interest rates and low 
g)nhaT tnfi.tinn make' bonds ah 
"increasingly attractive proposi- 
tion." Z. . - ■ .. 

Estimated starting' yield of the 
new trust 'wOl be around 7 per- 
cent gross, which Fidelity claims 
an alternative to build- 


ig society higher interest 
accounts. However, the initial 


Strategic Growth and Holbom 
Balanced Growth, will offer a 
. choice of investment styles. The 
Strategic fund will adopt an 
aggressive approach mid there- 
fore be more risky, while the 
Balanced Fund wflTbe more con- 
servative. • • 

. - Minimum investment in either 
-bond is a hefty £2,500. AppUca-. 
tiems- before January B wCD qual- 
ify for a 3 .5 pe r cent bonus allo- 
cation of extra units, dropping to 
per cent until the offer period 
ends on January 29. 


Small is shaky 


SMALLER companies have suf- 
fered most from the stock mar- 
ket crash. This is not surprising 
since they outperformed their 
bigger brethren during the first 
nine months of the year and 
attracted a great deal of specula- 
tive support from investors^ 

- Now- all that has changed. 

Small is no longer beautiful. The tion of around £80m. and a p/e 
expectation is that when, or if, ratio of only 6.7. Smallest is Law- 
the market rallies buying inter- .tax, clothes and umbrella manu- 


The fund will restrict invest- 
ment to companies with a maxi- 
mum market capitalisation of 
£l50m but will be biased 
towards those with a capitalisa- 
tion of under £5Qm. In the initial 
portfolio the largest company is 
Burgess, electrical appliance 
manufacturers with a 


est will be concentrated on the 
big, "safe”, blue chip stories and 
the smaller companies will take 
much longer to reoover. 

Nothing daunted, Windsor 
Trust sees this as an ideal 
moment to launch a Smaller 
Companies Trust Fund man- 
ager, Simon Baker, thinks it is a 
good time to buy, with price 
earnings ratios (p/e) at a much 
reduced level, even though the 
short-term outlook is none too 
bright 


facturer with a capitalisation of 
£3m and a p/e of &2. 

Windsor has established a good 
trade record for its four exi sting 
unit trusts, although its star per- 
forming property share fund 
launched in May has recently 
suffered a battering, Units in the 
new fund are an offer at a fixed 
price of 50p until December 11. 
There is the normal five par cent 
initial charge and a one per cent 
annual management fee. Mini - 
mum investment is £500. 


.trust market for the first time. 

CIBC Is no stranger to the UK 
investment scene or even, collec- 
tive investments. With its acqui- 
sition last year of stockbrokers 
Grenfell & Colegrave, CISC 
-Investment Management now 
has more than 5,000 clients^ pri- 
vate individuals, charities- and 
pension, funds -'and ah estab- 
lished Investment reputation and 
record. 

Now it is extending its invest- 
ment operations into the field of 
unit trusts to meet the demands 
of the smaller investor, with the 
formation of a new company 
CIBC Unit Trust Managers. 

Trevor Cooke, managing direc- 
tor of CIBC Investment Manage- 
ment, considers that the tuning 
is right. Indeed, the launch has 
been planned for some time, but 
it was felt that markets were too 
high. 

Now says Trevor Cooke, the 
October correction makes the 
launch much more attractive in 
terms Of market value. 

The first fund is a UK Growth 
Fund and CBIC feel that the UK 
equity market still has much 
for it In contrast to the 
iber razzmatazz style of 
i, CIBC will adopt a low 
key approach. Its target is to 
attract a modest £5m im the 
launch period. However, other 
funds axe planned for 1988 to 
build up to a full range. 

Minimum investment is £500. 
The charges are 6 per cent ini- 
tially - approximately 5.5 per 
cent allowing for rounding up - 
and 1 per cent renewal 

Eric Short 



Top fund over 
last three years. 

The FS Balanced Growth Fund has 


So much so, that £10,000 invested at launch 
In February 1984 was worth £61,700 on 
I3fh November 3987. No, Its not a misprint 

Following the recent market fell, seasoned 
investors may appreciate that this could be a 
good time to invest in unit truste 

Invest a little time finding out a lot more. 

(Past performance is not ncu$&mly a guide ta future 
performance. ) 


r 


— TME INITIAL SUCCESS CONTINUES — — , 

APPUCADONS PENDING FOR LAUTRO AND rMRO ' 

For further detaik contact yotaf Independent Financial Advinr or > 
send this coupon ta j 

SmunUu Kdjt FREEPOST FS Investment Managers 1 ^, jqp yfeg . 
George StoeetChsgOwGzm Or telephone 04 W 32 3 LVZ - ' I 

■ i would also Idee to know more about: ' J 

OTHER FS UNIT TRUSTS □ FS TAX SHEETS 0*EP)D 
NAMI(MtfMtVMta) 


■rUndiXto 


ADDRESS 


FOSTCODE 


OOMBWYUfwriaAld 


FT J 












ash nui 


• % 




s *"'i •: .*_ 

Mi’ t 

" r ' r -f , 

^*.' A-, . . 

** ■ i<=2N 


-I- 


ds 


$ 

Canai; 

ventu’ 


fund ove 
iree y £j!: 


Financial Times Saturday November 28 1987 


WEEKEND FT 



FINANCE & THE FAMILY 


Bony Riley looks at 
le gis lati o n which may 
hit island investment 


IF YOU are a mainland . Investor 
with holdings of Channel 
Island-based funds, or sire think- 
ing of putting money into such 
vehicles, look out for the possible 
impact of Britain's Fili&nci&l Ser- 
vices Act next April. 

The Channel Islands, along' 
with the Isle of Man and one or 
two other offshore financial cen- 
tres which do significant UK 
business, are- desperately nego- 
tiating to avoid being cast adrift 
by the mainland when the new 
investor protection laws come 
into force. 

New rules applying to offshore 
funds could nave the following 
effects: 

• Open-ended offshore invest- 
ment companies at present listed 
on the London Stock Exchange, 
and' which thereby gain certain 
mainland marketing privileges, 
will lose access to the UK'market 
and will be liable to be stripped 
of their quotations 

• Listings of offshore funds in 
newspapers such as the FT will 
be subject to new, tougher 
restrictions and publicising tde- 

E hone numbers and addresses, is 
kely to be banned . 

• It will continue to be fflegal 
to advertise such funds in the 
UK but In addition mainland 
intermediaries wfll not be able to 
advise clients (whether on the 
mainland or offshore) to invest 
However, much depends on 
whether Jersey. Guernsey and 
other centres are "designated* 
under the terms of Section 87 of 
the Financial Services Act. The 
signs are that eventually they 
will be, and that In fact the 
mainland authorities are being 
co-operative. But the trouble is 
that time is running out. 

With not much more than four 
months to go, Channel Islands 
fund managers fear a descent 
into a "black hole" during which 
they would become more or 'less 
invisible on the mainland. The ] 
hiatus could last for months. > 
A similar -predicament awaits : 
offshore life assurance.' compa- 
nies which are dealt with by a 
different section of the Depart- 
ment of Trade and Industry and 
are covered by a separat e provi- 
sion of the Act. 

Section 130 also sets out the 
process of designation of a coun- 
try or territory, which the Secre- 
tary of State must be satisfied 
offers insurance-laws which give 
"adequate protection" to policy- , 
holders against the risk of com- 
panies falling to meet their lia- 
bilities. 

This is a little different to Sec- ; 
tion 87, which says more specifi- 
cally that collective investment 


schemes (which can be unit 
trusts or open-ended investment 
companies) must be operated 
under investor protection laws at 

least equivalent to the new UK 
provisions. 

But it ib much more compli- 
cated than this, as anxious off- 
shore fund promoters are finding 
as they run up hefty legal bills in 
the process of threading their 
way .through the legislative tan- 
gle. 

European Community -based 
funds, for instance, can sneak in 
under cover of Station 86, as 


ing of Financial services. This te 
of no' value to the- Channel 
Islands, which have chosen to be 
outside the ECrbut it creates 
new opportunities for Luxem- 
bourg-based funds - and is one 
reason- why there is currently a 
huge queue of new funds await- 
ing approval in the Grand 
Duchy. 

Finally there is Section 88, 
which provides a route for indi- 
vidual hinds to obtain authorisa- 
tion. Under this provision, 
schemes must prove that they 
provide "adequate protection" to 
the participants. But it is not 
clear how. this section could be 
applied, and there is certainly no 
bureaucratic mechanism for. giv- 
ing individual clearance to hun- 
dreds of offshore funds by next 
ApriL 

The offshore centres are being 
forced into something of a cor- 
ner. They know they have to 
refine their own legislation - Jer- 
sey, for instance. Is in the pro- 
cess of rushing through new 
laws for collective investment 
schemes - but the full details of 
the regulations of the UK's Secu- 
rities and Investments Board 
have not yet been worked out, 
and may not be until February. 
So how can the offshore jurisdic- 
tions provide rules ‘equivalent’ 


to mainland provisions which 
have not yet been defined? 

The answer, it seems, is "with 
difficulty." Moreover there are 
divisions of opinion in centres 
like Jersey because by no means 
all offshore fund management 
groups want to market funds on 
the mainland. This is sometimes 
because they have no mainland 
marketing networks, but it may 
also be because they are reluc- 
tant to compete with UK parent 
companies. 

All the same, there is sixeable 
business currently being done in 
Channel Island bond funds on 
the mainland, and many Jersey 
fund managers are planning to 
designate uK-category funds 
which would be earmarked for 
approval by the mainland regu- 
lators. 

“We don't want to lose a mar- 
ket for any fund," says Richard 
Wilkinson, managing director of 
M1M Britannia International and 
chairman of the Jersey Fund 
Managers Association. But he 
suggests that when the rules and 
conditions are finally spelt out 
managers are going to have to 
decide whether UK recognition' 
is worthwhile tat any particular 
fund. 

Meanwhile, offshore groups 
are particularly annoyed that 
mainland intermediaries could 
be totally prevented from selling 
their products even when they 
are acting far overseas clients. 
The whole process of marketing 
investment products to UK expa- 
triates could be forced offshore, 
so that an individual spending a 
few years overseas would not be 
able to carry on using his famil- 
iar UK adviser. 

There is still a lot to play for in 
the next few months. But just to 
be on the safe aide, mainland 
investors in offshore funds are 
advised to note down the 
addresses and telephone num- 
bers of the managers. From next 
April they may not be able to 
look them up in the FT. 


Telecom bonus 


BRITISH TELECOM shareholders 
who chose 'the -share bonus 
father jthan the telephone bill 
vouchers, will finally get their 
reward on November 30. They 
■will receive one free share (up .to 
a maximum of 400) for every X) 
shares that have been held cort- 
tinously since the privatisation 
sale three years ago in November 
1084. 

■Hie additional shares, which 
will come out of the Govern- 
ment's 40.7 per cent stake in the 
company, will qualify for the 
interim dividend which is expec- 
ted to paid in February. 

The share bonus wfll not be 
subject to income tax or c ap i t al 
gains tax immediately. However, 
the shares will be treated for 


capital gains tax purposes as if 
they were acquired at market 
value on November 30. So if the 
price recovers to its previous 
peak of over SOOp, holders could 
f»i» an additional capital gains 
tax liability, but rather less than 
the profit on the original shares 
issued/- at 130p. There are very 
complicated rules laid down by 
the Inland Revenue to deal with 
the tax liabflily on shares bought 
at different prices. 

But few of -the 900,000 share- 
holders who opted to receive the 
bonus shares are likely to exceed 
the £6,600 annual exemption 
from capital gains tax. 

* 

John Edwards 


NO MATTER WHICJJ Wy THE MARKET MOVES 
YOUCOUIX) MAKEMONEY WITH TRADED OPTIONS. 


investor a unique oppammfty to maximize 




in equities. They can ctbi be used id help 
you make money ia a bear market - 
Bui very few brokers offer a - " 
traded options service to private 

investors. 

. At&nflhNewCburt 

will find a 



bat racogpsedStnflh New Court PLC as 
leaders in die traded options niariceL 

Now we are offering private, 
invEtiont wflh £10,000 or more to- 
Siyest, TOsane benefits of increased 
' potenhaife reward wiihliraftEdTi^ 
. afreadyavaSiSetolffl^institUionai 
investors; 

For owe information and a 
free copycf the December issue of 


John Edwards finds a PEP scheme for the brave or foolhardy 

If you don’t mind risks... 




St Peter’s Port, Gamtsej? will it stay a safe bsven? 

Offshore storms 


YOUR LAST chance to take out a 
1987 PEP scheme will seem a 
hollow sales message during the 
next fews for many investors 
nursing heavy losses alter the 
stock market crash. But Com- 
mercial Union evidently believes 
the British public U made of 
sterner stuff. 

It has just announced the 
launch of two new PEP schemes, 
one of which is designed to 

aDuesl to the especially brave, or 


Special Situations Plan it will be 
even riskier than the normal 
PEP in that there will what is 
described as an "aggressive" 
Investment policy. 

Un like most other m an a ge d 
PEP schemes there will be no 
investment In unit trusts to help 
spread the risk. What Is more the 
policy will be to trade in only a 
few shares at a time - rarely 
more than a maximum of three - 
very actively, possibly buying 
and selling within one account 
period or even one day. Invest- 
ments will also be -in non-blue 
chip companies. 

Commercial Union says this 
aggressive policy will "take 
advantage of the opportunities 
presented by today’s volatile 
markets". But it wfll need all the 
group’s expertise, and possibly a 
large slice of hick, to offset the 
extra charges and risks involved 
in such a policy. 

The group also introduc ed a 
new version of its Managed PEP 
introduced at the beginning of 
the year. The new plan will fol- 
low the same investment philos- 
ophy of holding the maximum 
permitted amount in unit trusts, 
with the remainder being 
invested in cash deposits and 
blue chip shares, what has 
changed is the struc- 


ture, which has been simplified. 
The new managed PEP has an 
initial charge of 2 per cent, plus 
a one per cent annual fee and 
dealing commission of 0.6 per 
cent There is no rebate an the 
purchase of unit trusts within 
the plan, so there is an element 
of double charging. However, the 
2 per ceit initial charge is com- 
petitive. There is a similar charg- 
ing structure far the Special Sit- 
uations PEP, except that the 
initial charge is higher at 6 per 
cent. 

Commercial Union is making 
special offers to anyone invest- 
ing in one of the plans before 
December 18 If you invest in a 
1987 PEP before- that date you 
will receive a 1 per cent bonus, 
equal to £24 on the maximum 
investment of £2,400. If you take 
out a 1968 version, before Decem- 
ber 18, you receive a 2 per cent 
bonus. 

Bradford & Bingley is offering 
a special 20 per cent interest rate 
during. December only on invest- 
ments made in its 1 988 Enter- 
prise or Blue CHip PEPs. You 
only get the higher rate of inter- 
est if your money is invested In 
one of the 1988 plans. If you 
withdraw your investment 
before January 1' the interest 
rate falls to 7.5 per cent 

So far this year Bradford & 
Bingley estimates that it has cap- 
tured about 8 per cent of the 
total PEPs market by selling 
some 15,000 of its 1987 Blue Chip 
plan. 

Next year it will introduce a 
more adventurous (and risky) 
scheme called Enterprise PEP 
investing in fast growing or 
underdeveloped companies. 
Investment in the Enterprise 
PEP will be confined to a lump 
sum of £2,400 and It will be. 


/you DQu’TBUfcN 
[ VfcUftfilslfieftSiM 

iT^PTaY 






pretty costly. Initial charges are 
6 per cent, uJus VAT, bi-tne first 
year with 0.75 per cent of the 
value of the fund being charged 
every six months. Stamp duty 
and brokerage are extra. 

The Blue Chip plan, which 
allows investments m lump sums 
of £800 or at least £50 a month, 
has the same basic charges but 
stamp duty and brokerage are 
free. 

Barclays is ma king "small 
adjustments" to its PEP plans in 
1988. One is that the Barclay- 
share PEP will be marketed 
seper&tely from t he B arclays 
Unicom unit Trust PEP to high- 
light their very different objec- 
tives. Secondly the Bardayshare 
PEP will be offered in multiples 
of £400 to help investment deci- 
sions to be made without delay if 
the market conditions are suit- 
able. 


Meanwhile the bank claims 
that it makes even better sense, 
after the market crash, to take 
out a 1987 PEP while you can to 
take advantage of the tax con- 
cessions for this year. It plans to 
invest PEP funds in BP partly 
paid stock since the tax-free con- 
cession will be particularly suit- 
able for a stock with such a high 
initial yield. At basic rate taxa- 
tion there is the prospect of a 
£130 tax saving in the first year 
of investment alone. 

While Barclays* basic charges 
are not particularly competitive, 
compared with market leaders 
Lloyds Banks, it does have a 
maximum ceiling on share deal- 
ing costs. 

- if you want to make a compar- 
ison of the different schemes 
available London intermediaries 
Chase de Vere Investments pro- 
vides details of 145 PEP schemes 
in its latest Pepguide, published 
this week. It costs £2. 

.Not so well publicised yet is 
how the PEP schemes have fared 
since Black Monday, October 19. 
on the stock markets. Burdened 
with heavy extra administrative 
charges and restrictions on 
investments, PEP schemes are 
already at a considerable disad- 
vantage to similar forms of small 
limited investment vehicles. 

Many of them tried to over- 
come .the costs problem by 
restricting investments to only a 
few selected shares— a risky pol- 
icy at the best of times. So some 
PEP schemes, which plumped 
for particularly vulnerable 
shares, are likely , to have suf- 
fered even more severe losses 
than the average downturn of 
some 30 per cent in the UK stock 
market. 

Whatever the investment pol- 


icy, unless it was to keep funds 
entirely in cash as was permitted 


be very heavy in the second half 
of the year. 

In response to an inquiry from 
an FT reader in Manchester, the 
Inland Revenue confirmed this 
week that losses suffered on a 

PEP plan could be offset against 
capital gains tax in the 1967/88 
tax year if the holder withdrew 
from a PEP plan. 

The reader asked two ques- 
tions, following the halving of 
the value of his PEP plan from 
£2,400 to £1,200. 

If he discontinued the PEP 
could: 

a) the shares be transferred to 
his own name rather than be 
reduced to cash immediately 
thereby providing the opportu- 
nity for a tax loss later in the 
1987/88 tax year? 

b) can a new PEP be taken out 
for 1987 to build up from a lower 
base? 

The answer to b) is a straight-' 
forward no, according to the 
Inland Revenue. Only one plan is 
permitted to be taken out in any 
one year. 

The answer to a) is more com- 
plicated. You remain the benefi- 
cial owner of the shares bought 
on your behalf under the PEP 
plan even if you decide to with- 
draw from the scheme, so you 
can retain the shares. However, 
you only establish a capital gains 
tax loss when the snares are 
sold, so you could bed and break- 
fast them. But by withdrawing 
early you lose any previous tax 
concessions, including the pay- 
ment of tax-free dividends and 
interest, and the plan manager 
may also charge you a with- 
drawal fee. 




Which company would you 
buy your pension from? 




THE EQUITABLE 


NEAREST RIVAL 


Number of 1st places in surveys of regular contribution with profits pofcfesfor the seltemplcyed 
as published by Planned Savings magarioe 1974fa 1987 mduave. 


Many companies will be competing The Equitable than with the worst 
to handle your pension but which : performer amongst our c ompetitors.* ■ 
should you choose? 

' As the oldest mutual life assurance FLEXIBILITY 
company in the wodd The Equitable^ The Equitable flexibility, too, is out- 

225 years of experience deariy sets us- standing Ym can retireataiiyagebetween 
apart However it is not just our long- 60 and 75 wi thout any penalty and are &ee 

evity you should consider. to vary your contributions as you wish. 

. . .... ..' . Furthermore, TheEquitable offers a wide 

OUTSTANDING TRACK RECORD range of investment mutes including 

. For the pest 14 years Planned Savings both with profits and unit-linked sthemes. 

m a g a z i ne has surveyed regular contribu* And unlike many companies which make 

tion with profits pension policies for the hefty charges in the form of low initial 

setf-emploj^d. Of the 25 tables published allocations or so called capital units to 
for 10, 15 and 20year terms, The Equitable cover the setting up costs of your unit- 

has come top in 13 and second in 6 mom. linked poficy,The Equitable makes no such 

An unrivalled achievement. charges. Also, our ordinary management 

: Quite simply, in that period, we charges for the underlying investment 

have more first places than all our UK fund ate commendably low. 

competitors puttogethet How do We achieve this? 

TOP PERFORMANCE \ NO COMMISSION 

Also, do not make the mistake of . The Equitable has never paid a 
t h i nk i ng there is little to choose between penny of commission to biokezs or other 
pension companies. middlemen for introduction ofbuaness. 

. If yon had retired on 1.9.87 aged 65 So more of your money is available for 

you'd have, been 55% better off with . investment 


NO SHAREHOLDERS 

Nor does The Equitable have any 
shareholders to nibble away at the profits. 

EXPERT INVESTMENT .. 

The Equitable has one of the finest 
investment teams in the United Kingdom 
and currently manages more than £3bn 
on behalf of its clients. 

, • Of-course, the past cannot guarantee 
the future but we think you'll find 
The Equitable^ efforts on behalf of our 
clients give unrivalled results. 

So if you want the best in Pension 
Plans, just write to The Equitable Life 
Assurance Society, FREEPOST, Walton St, 
Aylesbury, Buckinghamshire HP21 7BR 
or call us direct on 0296 26226. 

*20 year regular contribution with profits, policy — 
Planned Savings Survey November 1987. 



Founded 1762' 


The Equitable Life 

The oldest mutual life office in the world . 










VI WEEKEND FT 


Financial Times Saturday November 281987 


TWs advertisemOitdoes not constitute an offer or invitation to subscribe tor any shares. 


BUSINESS EXPANSION SCHEME OFFER 


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CONSTRUCTION AND DEVELOPMENT PI C 



An opportunity to invest in a property based company 
Access to the construction expertise of Norwest Holst 
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See which way the prices 
are really heading. 

Fund rnanftgm spend AovnndB on 
compute* to chan riim nu trend* and 
voUttHty. Now. tor unite £30 Mid wHhoui 


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DON’T Invest in the Stockmarket 

until ynu have read our “After the Crash” feature, 
free with this months USM Magazine. 

For your free copy write to 
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Weekend Business 


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would like to add new product flaea. 
Preaeatly man n^auring packaging 
marhiuct y for the paper mdpviry lot 
would wc tou o c opportunities to 
dhreniiy. 

flat can Mr. Rati to the Embassy 
Ho4w Hotel, Loadoa 81 984 7222 
Nm. 30-Pec. 3 tor lafarwHotoar 
writs to Baat F7946. Thun rial *~ 
WC— a Street. I ' ~ 

4SY 


Small But Veiy 
Vigorous 

Sales Mattering Oigmisatioo 
in Process Of Major Expansion 
is open to New Products. 

D*mB*7»KtxNa.F794a. 

HamMUa,WOa toaS 
Iaadaa, EC4P my 


Busii 
for Sate 


OLD ESTABLISHED 

CRYSTAL GLASS 

COMPANY 

(MIDLANDS) 

FOR SALE 

As i gang convent 
Turnover in cams of £800^000 
Far further details reply to 

Box H2870, Ftouacial Tinea, 10 
Onom Sum, London BC4P 41V 


LONPON C0 NSIM C H 0 W 

COMPANY 

von SALE. 

Turnover £34 tjv Gpod order book. 
KwtNMied BBito ns r buL Mini- 
mum investment for majority 
— "'ipuiawy available. leaao 
: JftOOo gq ft u u nm ai pa l 

pimcny. 


London. EW4aY. 


Spare Capacity tat 

NEWLY INSTALLED C.N.C. 
TURRET PUNCH A NOBLER 
CN.C PRESSBRAKES A GUIL- 
LOTINES FOR IMMEDIATE 
ACTION CONTACT. 

KELUS (0724)282828 


Hotel* A 

Licensed Premises 


80 PWUC. nr Ww o ba t 6 

LMrtGredMWBteMK 


i m tacrv 


iWaiai - SO own, 

Utahans, apactoua 4 bad- 


town* 8 modem 
to about 12M an For 


ar te ant nil pend. 

n» tWSlw itfts. to 
sals a a fiotog Con. 
ad re o n atop* K 6WL 


iBALTafe 


Clubs 


CM hn aaaM the mfetrt bKanwa a oner W 
■ W rpw Od rate tori — qh bomlQ- 


• FINANCE & THE FAMILY* 


Eric Short sees problems ahead for life companies »— ■* 29 r** 

London Life cuts back 


tinti 


EVER SINCE United Kingdom 
Provident Institution ran into 
trouble early last year, the life 
assurance market has been 
looking for the next mutual lift 
company to run Into problems. 

Last week, London Life Associ- 
ation, the second oldest mutual 
in the UK, founded in 1806, 
revealed a pa ck ag e of measures 
designed to cut back on Ua cash 
outflow, including, staff redun- 
dancies, office closures, a reduc- 
tion in next year's new business 
growth and a reduction In its 
terminal bonus rates pn claims 
arising from next Tuesday 
December L 

London Life is one of the very 
few life companies that does not 
pay commission to independent 
intermediaries. It had a reputa- 
tion for being a small, but well 
run profitable life company with 
keen rates and high up in the 
with-profits perf or mance tables. 

So why have these drastic 
measures been taken and what 
will be the effect on investors - 
both present and potential poli- 
cyholders? 

In a nutshell, London Life has 
outgrown Its strength. New -bad- 
ness growth which was running 
at SO per cent a year, together 
with the need to maintain high 
bonus levels, had stetched the 
underlying financial resources of 
the company mid it has had to 
retrench. 

Being a mutual, it has to rely 
on ha own internal resources to 
finance its new business growth, 
a great consumer of capital. 
Being small, these resources 
woe somewhat limited. 



The collapse In the UK and 
other stoc kmarh ets was the final 
straw for London Life’s 
appointed actuary, Brendan 
McBride. The fall cut back the 
company’s margin between 
assets and liabilities to a level he 
considered low enough to require 
remedial action. 

So over 100 staff have been 
made redundant or retired early, 
five branches hare been closed 
and the two main London 
branches merged in a rationalisa- 
tion programme. New business 
In 1988 will be limited to 8085 
per cent of this year's new busi- 
ness - a outbade that will be even 
more severe than it looks since 
everyone is anticipating massive 
growth next year for life compa- 
nies, particularly in pension*. 

However, the immediate 
impact on policyholders fs the 


cut in terminal bonus rates, 
which are added to the benefits 
when a policy matures or 
becomes a death claim. The com- 
pany increased these rates dur- 
ing the year and seme reduction 
would have been likely in any 

event to reflect the stock markat 

fan. 

London life has a complicated 
terminal bonus structure f or li fe 
contracts ami a straightforward 
rate for pension contracts. At toe 
begtolng of the year, the rate far 
pensions was 16Q per cent of 
attaching bonuses. This to 
increased to 175 per cent In the 
summer. Now it is reduced to 
125 per cent. 

> The effects on maturity values 
for both life and pension con- 
tracts are shown in the tables. 
Policyholders must remember 
that the reductions in maturity 
values do not mean an actum 
loss on their contract. They "fll 
«taii receive a positive return on 
their investment. But instead of 
London Life being among the top 
performing life companies, it 
will now be around average 

However, what will concent 
the main body of policyholders is 
the effect on reversionary 
bonuses? 

London Lift dedans its rever- 
sionary bonuses around April 
each year - well after most of the 


Tenn 

Mrturty UNue MataA* Whft 

November 1W Dposmber HW 

£ t . 

. Chenge 

« 

10 yen 
ISymra 

25 yon 

9S : " 5S 

41.4 

-11.0 

-8.6 

Wtthpiofts section 226 defaoed anmitiy new wasting tor a sftHmptoyvd 
mervptyinflmual premiums of HSC0, 

Term No. of Cash Vftbe Cash value Chsnps 

.payment* ' Nowfntac HR December 1987 

£ £ % 

5 years 

10 yearn 

6 SjiOB 4.858 

11 14956 13620 

• *8.7 

*8.6 


end-1980. And such a move 
would make it more acceptable if 
London lift's actuary does rec- 

pnunend a reversionary bonus 
cut. 

However, all indications at this 
stage are that marketing consid- 
wlse Ufc 


pani* 

ponui 


With interest rates coming 
down, life company actuaries 
generally would have complete 
■justification in reducing their 
reversionary bonus rates for 


Kerin Goldstein- J ackson sees post-crash bullying 

Chinese check 


erations wfll pressurise life com- 
ties to keep reversionary, 
lives unchanged for another 
-year. 

So policyholders with London 
life either wait and see what 
happens or they vote with their 
feet now and surrender their life 
policies (cease paying premiums 
if they hold pension contracts). 

London Life had a reputation 
of bring one of the top paying 
companies for surrender values, 
though the number of policy- 
holders who actually took advan- 
tage of this was comparatively 
low. 

As part of the ecoreny mea- 
sures, London Life has changed 
Its basis to bring surrender val- 
ues more in line with the mar- 
ket. 

Existing policyholders should 
consider very carefully before 


RECENT communications from 
some of the companies in which 
I still have shares show that the 
effects of the stock market crash 
are not confined to felling share 



In November 1985 1 bought 
shares in China and Eastern 
Investment Company and dis- 
posed of part of the shareholding 
in January this year- 

I retained a small number of' 
shares and warrants in the com- 
pany because it was performing 
well and regularly issued very 
informative circulars about its 
investments in companies with 
direct involvement in China. 

In its October 7 repeat for the 
year ended July 31, 1987, the 
company repotted a 98.6 per 
cent increase in Its assets and 
proponed paying not only a final 
dividend out also a special divi- 
dend. 

last week I received a brief 
circular from China and Eastern 
stating that at its annual general 
meeting on November 9 the pro- 
posal to declare a 
dend 


was ‘not 


ivi- 
. following 


the result of a-poll requested by 
a shareholder of the company.” . 

I was somewhat surprised at 
the brevity of the circular. Why' 
had a shareholder requested 
such a poll? With the stock mar- 
ket crash, why had they not wel- 
comed the opportunity to receive 
some extra cadi? What did the 
directors think of this situation? 

I phoned Baling International, 
the investment managers of 
Chine and Eastern. Baring 
politely declined to reveal the 
name of the shareholder who 
proposed the motion but con- 
firmed that It was one of the 
company's large institutional 
sharehaklera, supported by one 
other large institution. 

These institutions had felt 
"that to pay the special dividend 
wquld be imprudriit in view of 
recent market conditions’ and 
the money saved should be used 


DIARY 
OF A 
PRIVATE 
N VESTOR 


"to bolster the assets of the com- 
pany so that it could make fur- 
ther investments, particularly in 
China.” 

If China and Eastern's own 
directors had proposed such 
action, I might well nave 
with it But if an 
shareholder did not want a spe- 
cial dividend then why did it not 
simply sell its shareholding and 
invest elsewhere, instead of 
depriving ^rnall private investors 
like-, me- of our anticipated 
reward? - 

* I would much prefer powerful 
Institutions to use their consider- 
able voting power to change the 
management of certain British 
companies that are poorly run 
(which would be to the benefit 
of all shareholders) rather than 
reducing the level of dividend 
payments of & well managed 
company. 

Last week I also received a cir- 
cular from ERA Group concern- 
ing a proposed private . subscrip- 
tkm for R5m ordinary shares at 
70p per share and a rights issue 
of up to 6,422,465 shares at 25p 
per share. 

The circular reported that 
Murray Gordon had joined the 
board together with two former 
colleagues from his successful 
Combined English Stores Group 
which had been bought by Next 
in May this year. 




The circular was dated Novem- 
ber 18. In p re-c ras h times such 
news would probably have pro- 
duced a jump in ERA'S share 
price, yet on November 18 the 
shares woe 66p and by Novem- 
ber 20 they had eased to 65p- 
Compare this to what happened 
to ERA’S share price prior to the 
crash. 

I first bought shares in the 
company (then named* Times 
Veneer) in May 1986' for lT£p 
each and sold some of the shares 
for 56.5p each in September of 
that year. The share price had 
soared ss a result of David Lan- 
dau and his associates becoming 
directors and large shareholders 
in the company. ERA’S shares 
continued to rise and I sold most 
of my remaining ERA shares far 
163p an September 16. 

Not only has ERA moved to be 
one of my most profitable Invest- 
ments, it has also demonstrated 
my long-held view that it seldom 
pays to be too greedy. If 1 had 
held on to all my ERA shares t 

he value 'of that shareholding 
would have more than halved in 
the pari few months. By taking 
some profits I had not only 
recouped considerably more than 
my original investment but 
could also afford to view my 
remaining ERA shareholding as 
a pure gamble. 


CHESS 


PROBLEM No. 699 
BLACK (3 MEN) 


CHESSPLAYERS and writers 

sometimes de b at e whether their 

game is an art, a science or a 

sport. They rarely arrive at a 

dear conclusion, and little won- 

der. The spectrum of chess activ- 
ity, from Kasparov and Karpov 
at the top to social' players tak- 
i ng^o n their computers is very 


ing, is this Rati creation where it 

takes just one move in an appar- 

drawn situation to reader 

: helpless. 

BLACK (6MBQ 


When K and K prepare for 
their games with the help of 

teams of research assistants, 

delving into Chess Informant or 

the latest tournament bulletins 

for theoretical novelties, chess 

looks close to scientific research. 

When grandmaster events reach 
their dimax, and first prize of 
thousands of dollars depends - on 

fast thinking in time pressure, 

then chess becomes competitive 

sport- 

The artistic dement is harder 
to pin down. It Is present ig the 
Intuitive brilliances of Tal or 

Alekhine or in the composed 

mates in two of Sam Lojki or 
Mansfield, and may be dearest 




WHITE (4MB4) 

White mates -in two moves, 
against any defence (by J.CJtad- 
ky). As usual. White plays down 
the board and his pawn n on the 

seventh row. 

Solntloa on page XVH 

Leonard Barden 


In endgame studies, the artistic 

miniatures of chess. Endgames 
often depend on the specific 
geometry of the chessboard, with 
solutions displaying an elegant 
logic They appear simple, felt 
months of won may go into 

their creation. 


Riehard Red, a Czech, was one 
of theletfing grsndmtfte? P? 
the 1920s, aim a writer whose 
Masters of the Chessboard, just 
re-issued by Batsford (£8.95) is a 
brilliant guide to strategy 
through! the games of the great 
players. Reel’s endgame studies 
sought natural positions with 
strong links to practical chess. 
His best-known study has just a 
king and a pawn on each aide, 
ana shows the white king catch- 
ing an apparently unstoppable 
fast running black pawn. 

Less familiar, but jurtasrtrik- 


WMTEcaieo 

White ft -to move and win. It b 

easy to see that if 1 KxP, B-B5 

dh; 2 K-N2, KxN; 3 P-R6, B-Nl, 

Blades king and bishop stop the 

white pawn queening. Equally if 

1 P-P8, P-N3, while If White's 
attacked knight moves then 
Black's K-N4 wins the passed 
pawn. 

The hrUlftnt winning move ft 
I K-RL There ft no direct threat, 
and if Black could pass the draw 
would be safe. But the zugzwang 
requirement to piy|n» his move Is 
fatal: any bishop move is met fay 
a knight fork, while if K-Q$ 2 
N-B5 ch or KxN; 2 P-R6. 

This year Is the centenary of 
the London Chess League, oldest 
constituent unit of the British 
Chess Federation. A celebration 
match London ▼. Rest of 
England will be played next Sat- 
urday, 5 December, at IGA. Hie 
Mafi, SW1. Games are 2-8 pm, 
several leading British masters 
will be in action, and spectators 
are welcome. 


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years _ , 

against returns elsewhere. 

As far as new investors are 
concerned, no-one under the best 
advice principles of the fi n a ncial 


services fcg ft&ttfan could recom- 
mend London Lift contracts for 
at least the next year or so, a 
feature that the company itself 
accepts. 

All signs are that the company 
has taken the necessary correc- 
tive action in time. It claims that 
the Department of Trade and 
Industry has not been directly 
involved In the measures, 
though it haul been kept fully 
informed at all stages. 

But It will take time to rebuild 
the financial base of the com- 
pany and probably put paid to 
any ideas of becoming a major 
player in the traditional life sec- 
tor. Its future role, as long as it 
remains a mutual company, 
must surely be as a niche player 
- a role it played successful for 
well over a century. 

If the company had relied on 
the Independent intermediary 
market for its business, then the 
odds are that it would have been 
finished as an independent 
entity, since the intermediaries 
wquld have dropped it like a hot 
brick. 

However, London Life operates 
as a direct sales company with 
its marketing under its own con- 
trol. As such, the company has a 
reasonable chance of resolving 
its problems on its own. But it 
will not have any difficulty 
reducing its new business next 
year. 




].G INDEX LTD, 9-U GRDSVEN0R GARDENS, LONDON SW1W 0BD 
Tek tn- 828 7233/5699 Reuters Code ION, IGIO 

* L FT 30 T FTSE 100 j WALL STREET 

Not. 1295/1307 -17 N«. 1638/1650-50. Dec. 1934A949 -1 

Dec. 1307/1319 -12 1 Dec. 1653/1665 -16 1 Mar. 1944/1959 -1 
Prices taken «t 5pm and change b from previous dose at 9pm 


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WEEKEND FT VH 


: Financial Times Saturday November 28 1987 

SPECIAL EDITION 


n 


□ 




©tar 


□ 




THE SUN RISES IN 
THE WEST: 

Goldstar opens the first Korean factory in Germany. 



n NOVEMBER 25, 
1987 the second Gold- 
star factoiy outside of 
Korea is going to be 
opened in Worms. The 
first was founded in the 


USA in 1981, and it is now pro- 
ducing 1.0 million color televi- 
sions and 300.000 microwave 
ovens every year. The founda- 
tion stone of the Goldstar 
Europe plant in Worms was 


laid in autumn of 1986. The 
quality of the Goldstar VCRs 
and color televisions which are 
going to be produced here is 
aknowledged to be among the 
world's best. The result is a 


perfect combination: Asian 
high-tech, made in Germany. 
All things considered, it can 
hardly be regarded as a coinci- 
dence that the plant is being 
opened on the 100th anniver- 


sary of the introduction of the 
designation „Made in Ger- 
many 14 - which has since come 
to be regarded as a mark of 
superlative quality the world 


over. 


Superlative Asian Technology. 
Made in Germany. 


The 500 German 
employees of the 
Goldstar plant in 
Worms will be taking 
great care to ensure 
that every single one 
of the VCRs and 


color televisions pro- 
duced comes up to 
the exacting stan- 
dards which one has 
come to expect from 
high-tech German 


products. 


in Qiici Hint: 

THE LUCKY-GOLDSTAR GROUP 


THE LUCKY-GOLD- 
STAR GROUP is one of 
the largest and most suc- 
cessful of all the Korean 
corporations , account- 
ing for more than 10 % 
of the exports of the 
nation as a whole . With 
its 150.000 employees, 
the group’s total annual 


turnover comes to 
around 15 billion US 
dollars . The group com- 
prises 32 subsidiaries, 
operating in a very wide 
range of different fields 
— in chemical industry, 
in energy and resources 
industry, in electric and 
electronics industry, in 


finances and others. 
GoldStar Co. Ltd., 
which specializes in 
computer and communi- 
cation, consumer electric 
and electronic products, 
electronic devices and 
components, is the lar- 
gest of all these subsi- 
diaries. 


Great Works 


Everything about the new Worms on November 25 is 
works to be inaugurated in impressive. Completed in a 


n 



mere 12 months, Goldstar’s 
European factoiy for the pro- 
duction of VCRs and color 
televisions is 20,000 square 
meters in area, located on a 
100,000 square meter site. 
The investment of the 
factory has a volume of 
67 million marks, a one- 
hundred percent Goldstar 
investment. ■ 


□ 


□ 


□ 


□ 


GoldStar 

Deutschland GmbH 
HarkortstraSe 41 
4030 Ratingen 1 


GOLDSTAR U.K. SALES LTD. 
Goldstar House, 

264 Bath Road, Slough, 
Berkshire, SL1 4EW 


$ GoldStar 


AUDIO ■ VIDEO ■ TV - COMPUTER 

ULTIMATE TECHNOLOGY 






i 





£ 




VHI WEEKEND FT 


Financial Times Saturday November 28 1987 



On the brink again 


“ETHIOPIA is clearly approach- 
ing another crisis. The harvest 
has failed and people are starting 
to leave their homes to find rood? 
If we act quickly we can prevent 
famine and the tragedy of three 
years ago - but time is running 
out," 

Only a few months ago aid 
workers like Patrick McClay of 
Oxfam were confident that a 
repetition of the famine which 
devastated Ethiopia in 1984 and 
1985 could be averted. Today 
their confidence has evaporated 
and aid agencies like Oxfam are 
implementing emergency mea- 
sures. 

Within the next Tew days five 
British charities will launch an 
appeal to raise money for food, 
medical facilities and transport 
for Ethiopia in a final attempt to 
avert famine. The charities - 
British Red Cross, CAFOD, Chris- 
tian Aid, Oxfam and the Save 
the Children Fund - hope that 
the public wifi respond as it did 



ine ended in late 1986. Oxfam’s 
official budget this year will be 
increased to SI. 4m, while Save 
the Children's wifi rise to Sim. 
In addition both plan to send 
emergency aid. 

This continued commitment 
has ensured that the short haul* 


trucking fleet set up by the two 
charities in 1985 to distribute 
food in Wollo is stfil intact. After 
the famine the trucks were used 
to transport agricultural equip- 
ment and grain. They are now 
ready to return to emergency 
action and both charities plan to 
add to the fleet 

There is still a critical need for 
more trucks. Band Aid, the char- 
ity formed by the pop star Bob 
Celdorf to raise money for the 
Iasi famine, bought a fleet of 
long haul trucks to take food 
from the ports to regional distri- 
bution points. But more long 
haul trucks are needed. 

In the regions of Tigray and 
Eritrea, the distribution of food 
is obstructed by political prob- 
lems and the continuing conflict 
between the Ethiopian govern- 
ment and guerillas. But in Wollo, 
at least, the relief infrastructure 
is ready to fend off famine. 

Another lesson of 1984/85 was 
that, instead of concentrating on 
crisis measures • like the provi- 
sion of high calorie food for 
starving children - the aid agen- 
cies should take early action to 
avert famine. 

Thus in May, when there was 
concern that a plague of locusts 
would devastate the harvest, 
money was spent on a pesticide 
programme. In July, when It was 
evident that the main crops 
would fail, the charities provided 
seeds for short term crops, like 
chick peas, in an attempt to 
ensure that at least something 
could be salvaged from the 
year's harvest. 

From September onwards- 
grain has been shipped to Ethio- 
pia. More recently as the crisis 
has escalated, supplies of food 


All in a 
good cause 


Alice Rawsthorn finds 
the spectre of famine 
still threatens Ethiopia 


three years ago when the public 
donated millions of pounds for 
famine relief in Ethiopia. 

The timing is critical. The 
dearth of rain in Ethiopia this 
summer ensured that the harvest 
has almost certainly failed. In 
recent weeks people in the most 
vulnerable areas - the Northern 
provinces of. Wollo, Tigray and 
Eritrea - have already begun to 
leave their homes to converge 
upon the cities in search of food. 

Aid workers in Ethiopia are 
desperate to avoid a repetition of 
the problems of the 1984/85 
famine whereby hundreds of 
thousands of people camped near 
food shelters on the plains out- 
side the cities. Disease spread 
like wildfire. Thousands of 
adults and children, who might 
otherwise have found enough 
food to survive, were killed by 
the epidemics. 

If enough food arrives in 
Ethiopia and if that food can be 
distributed to the worst affected 
areas, these embryonic camps 


should disperse and the worst 
effects of famine may be forest- 
alled. In many ways the chances 
of fending off famine are far 
higher than they were three 
years ago. 

When famine struck Ethiopia 
in the closing months of 1984 the 
country and the aid agencies 
working within it were entirely 
unprepared. Charities like 
Oxfam and Save the Children 
had maintained a presence in 


the country since the famine of 
1973. But famine relief reaulres 


1973. But famine relief requires 
storage facilities, trucks for dis- 
tribution, and food shelters. 
Three years ago this infrastruc- 
ture had to be built from scratch. 
Today much of it is still in place. 

One of the lessons the aid 
agencies learnt from the 1984/85 
famine was that the facilities 
established to cope with the cri- 
sis should remain intact 

Both Oxfam and Save the Chil- 
dren have increased their fund- 
ing to the country since the fam- 



David Cohen advises on how to avoid possible revenue traps 


Keeping one’s options open 


Still going hungry.. .a 
mother and her children 
at a refugee camp 

have been airlifted to the worst 
affected areas. More food is 
needed. At the very least the 
country will require lm .tonnes 
of grain, to date donor govern- 
ments have promised only half 
of this requirement. 

If the additional grain arrives 
and if the public responds to the 
emergency appeal, aid workers 
believe that there is still time, to 
forestall famine in Wollo, at 
least. If not then the tragedy of 
the last Ethiopian crisis will be 
repeated and hundreds of thou- 
sands of people coujd lose their 
lives. 

Donations to the Disaster 
Emergency Committee appeal 
for Ethiopia should be sent to: 
PO Box 999, London EC2R 7ET. . 


i MANY executives will soon have 
'the chance to exercise Revenue- 
japproved share options. But 
careful planning is essential if 
the taxman's share of these 
option profits is to be kept to a 
minimum. * 

Executive option schemes 
were introduced by the 1984 
Finance Act and the Inland Rev- 
enue began approving schemes 
in the autumn of that year. Since 
: these options usually cannot be 
exercised for at least three years, 
the first batch of potential exer- 
cisers is only now approaching 
the starting fine. 

The amount payable on the 
exercise of an approved option is 
the share price of the company 
on the date when the option was 
originally granted. If this sub- 
scription price is higher than the 
current snare price, then exercis- 
ing the option would show as 
much financial acumen as apply- 
ing for shares in the BP offer. 
The only possible advice to an 
executive in that position would 
be to delay exercise and hope 
that the share price recovers dur- 
ing the remaining seven years 
before the option expires. 

In spite of the Stock Market 
collapse, however, share prices 
are generally well above 1984 
levels, so most option holders 
will still be sitting on potential 
profits and face the choice of 
either taking the money or hold- 
ing on to the shares. 

- Whichever decision is made, 
the bank manager's assistance 
may be called fix'. Even those 
who decide to cash in their prof- 
its may need to take out a bridg- 
ing loan since the shares will 
have to be paid for before they 
can be sold. But until last wed: 
it seemed that' an executive who 
borrowed to finance his exercise 
could land himself in serious tax 
trouble. 

The main benefit conferred by 
the 1984 legislation is that 


options can be exercised free of 
income tax But this dispensa- 
tion is withdrawn if the s har es 
issued are subject to “restric- 
tions,’ or if the employee's free- 
dom to sell is in any way fet- 
tered. If shares are bought with 


borrowed money the conditions 
imposed by the lender will 
almost certainly amount to 
“restrictions.’ Under the existing 
legislation, this would mean an 
immediate income tax charge on 
exercise of the option. 

Last month however, the Gov- 
ernment admitted that this par- 
ticular tax trap was never 
intended. In the light ot that 
admission, Norman Lamont, the 


Financial Secretary to the Trea- 
sury, announced that next year's 

Finance Bill would correct the 
position with retrospective 
effect. 

Although this means that, 
loan-related restrictions are no 
longer a danger, executives 
should take great care not to cur- 
tail their rights In any other 
way, for example by agreeing to 
vote the shares in accordance 
with someone else's instructions. 
However trivial the restriction, 
the likely consequence will be an 
income tax bill at the employee's 
top rate of up to 60 per cent. 

If an option homer does take 
out a loan, the interest he pays 



give rise to an aggregate CGT 
liability of S2.M0 X 2) 

which is a saving of SI. 980 com- 
pared with the original scenario. 

The caveat - which should 
hardly need spelling out at the 
moment - is that a fall in price 
before the second rale may wipe 
out or even exceed the projected 


be charged at a flat rate of 30 per 
cent after taking account ol 
indexation and the current 
annual exemption of £6,600. if 
the share sales can be spread 
over several tax years then the 
benefit of multiple annual 
exemptions should help to keep 
Che tax hill down. 

Take the case of Mr A, who 


tax saving. 

An employee who does wish to 
stagger his share sales may be 
tempted only to exercise his 
option for as many shares atf he 
wished to sell at each stage. He 
could then avoid laying out 
money for those shares which he 
did not intend to sell Immah- 
ately, and would retain the free- 
dom not to exercise the balance 
of the option if the market price 
subsequently fell below his sub 

script! on price. . 

However, in spite of these 
apparent advantages, multiple 
exercises of options can create 
disastrous tax consequences. 
This is because of the statutory 
rule that income tax is payatle 
on the exercise of an option 
which takes place within three 
years of a previous tax-free exer- 
cise. 

Suppose that Mr A decided to 
exercise half his option now aid 


can only qualify for tax relief if 
his company is “unquoted.* Com- 
panies whose shares are dealt In 
on the Unlisted Securities Mar- 
ket or the Third Market are 
regarded as unquoted for this 
purpose. Additional conditions to 
be satisfied before relief will be 
granted are that the company is 


was granted an option over 
10,000 shares in October 1984 at 
a subscription price of £1 per 
share. He exercises the option in 
October 1987 when the share 
price has risen to £3. If he sells 
all the shares immediately he 
will make a taxable gain of 


£13.400 (£20,000 less £6,600) on 
which CGT of £4,-020 will be pay- 
able. 

As an alternative, Mr A could 
sell 5,000 shares now and the 
balance on April 6 1988, the first 
day of the next tax year. Assum-' 
ing no change in the share price, 
of the two sales will net Mr 


controlled by five or fewer per- 
sons and that the employee 
either occupies a management 
position or else owns at least 5 
per cent of the shares. 

The next tax to be considered 
is capital gains tax on the ulti- 
mate sale of the shares. This will 


A a £10,000 gain of which only 
£3,400 will be taxable. This will 


the other half immediately 
before his second sale in A pi I 
1988. Since the first exercise will 
be tax-free, the second will be 
caught. His ploy to exploit in 
extra CGT exemption will have 
completely backfired because w 
wifi not nave a CGT liabilky 
against which to offset the sec- 
ond exemption, and instead will 
pay income tax ai his top rate. If 
this is the 60 per cent maximim. 
then he will pay total tax af 
£7,020, £3,000 more than if ie 
had simply exercised his optirn 
in full and sold all the shares it 
once. 

David Cohen is a partner at 
Poisner & Company, Soliciion, 
of London. 



as at dose of business on Monday 23rd November 1987 


i at 3 1st October 1987 


as at dose of business on Monday 23rd Nooember 1987 


as atS 1st October 1987 


Total 

Net 

Assets 

(I) 

£ million 


INVESTMENT POLICY 
Trust 
( 2 ) 


Management 

(3) 


CAP ITAL & INCOME 
GROWTH 
Alliance Trust 
Bankers 

British Investment 
Brunner 

Edinburgh Investment (w) 
Foreign and Colonial 
Globe 

Govett Strategic 
Job Holdings 
Keystone 
Klein wort Charter 
Meldmm 

Scottish Mortgage 
Second Affiance 
TR Industrial & General 
Witan (w) 


Touche. Remnant 
Independently managed 
Kle in wort Grievesoa 
Dunedin Fund Managers 
Foreign & Colonial 
Independently managed 
John Govett 
Kleinwort Grievesan 
Mercury Asset Man. 
Kl ei nwort Grievesan 
Gartmare 
Baillie, Gifford 
Independently-managed 
Touche, Remnant 
Henderson 


United Kingdom 
City of Oxford 
Fleming Qavwhowe 
Shires (w) 

TRC3ly of London 
Temple Bar 


HambnuBank 
Robert Fleming 

Tonrae. Remnant 
Guinness Mahon hnc Man. 


CAPITAL GROWTH 
General 

309 Anglo & Overseas 

142 Atlantic Assets (w) 

91 Electric & General 

35 Greenftiar(w) 


Morgan Grenfell 
Ivory &Simc 
Henderson 
Henderson 


Internationa l 

Berry 

Child Health (w) A ■ 

English & Scottish 
F&CEurotrust 
Fleming Overseas 
Fleming Universal 


Gartmare Inform. St Fin. (w) 
German Securities (w) 
Hambies (w) 

Kleinwort Overseas 
Mid Wynd International 
Monks 

Murray Smaller Markets 
Nordic A 

North Atlantic Securities A 
Northern American 
Northern Securities 
Paribas French 
Romney 
Schroder Global 
Scottish Eastern 
Scottish Inv. Trust(w) 
Stratton Inv Trust 
Tribune 
USDC 


GT Management 
Thornton Sc. Co. 
Gartmore 
Foreign & Colonial 
Robert Fleming 
Robert Fleming 
Gartmore 
Gartmore 
Liechtenstein (UK) 
HambraeBank 
Klein wort Grievesan 
Baillie. Gifford 
Baillie, Gifford 
Murray Johnstone 

ffT Managemen t 
Morgan Gratisll 
Dunedin Ftind Managers 
GT Management 
Paribas Asset Man. 
Lazard Brothers 
Schroder Inv. Man. 

Martin Currie Inv. Man. 
Independently managed 
Baring Inv Man. 

Baring Inv. Man. 

GT Management 


North America 
117 American 

144 Edinburgh Amer. Assets 

110 Fleming American 

30 Gartmore American Sees. 
125 Govett Atlantic 

63 TR North America 


Edinburgh Fund M 
Ivory & Sime 
Robert Fleming 
Gartmore 
John Govett 
Ttoocha, Remnant 


Far East 

19 Australia (vb) A 

46 Drayton Far Eastern (w) 

6 EFM Dragon (w) 

195 F &C Pacific (w) 

309 Fleming Far Eastern 

348 Govett Oriental 

22 Martin Currie Pacifie(w) 
19 Pacific Assets (w) 

31 TR Australia (w) 


Edinburgh Fund Mgrs. 

Foreign* Colonial 
Robert Fleming 
John Govett 
Martin Currie Inv. Man. 
Ivory & Sime 
Touche, Remnant 


Japan 

50 Baflhfi Gifford Japan (w) A 

14 Baillie Gifland Shin Nipp.(w) 

102 CrescenUapan 

235 Drayton Japan 

174 Rerning Japanese 

100 GT Japan 

95 Japan Assets (w) 

67 NewTbkyo(w) 


Baillie, Gifford 
Baillie, Gifford 
Edinburgh Fund Mm. 
MIM 

Robert Fleming 

GT Management 

Ivory & Sime 

Edinburgh Fund Mgra. 


Commodities & Energy 
7 New Darien Oil (w) 

23 Precious Metals A 

88 TR Natural Resources 


Hodgson Martin 
J. Rothschild 
Touche, Remnant 


Technology 

10 Baillie Gifford Tech, (w) 

77 Fleming Technology 

322 TRTechnology 


Baillie, Gifford 
Robert Fleming 
Tbucbe, Remnant 


Share 

Price 

(4) 

pence 

Yield 

(5) 

% 

Net 

Aaoet 

Mie 

(6) 

pence 

737 

4.7 

957 

62 

3.4 

75 

470 

5.1 

586 

96 

3£ 

•124 

133 

4.3 

184 

96 

2.7 

120 

132 

4.4 

165 

, 226 

2.4 

291 

141 

3.6 

174 

250 

3J 

327 

108 

3.5 

139 

116 

3.7 

147 

91 

aa 

120 

661 

4A 

849 

100 

3.1 

125 

104 

2.9 

131 

63 

3A 

76 

19S 

3.9 

252 

205 

9A 

225 

69 

5.1 

77 

184 

4.8 

231 

351 

2.7 

475 

43 

1.6 

57 

75 

L9 

93 

393 

0.7 

343 

243 

0.6 

283 

49 

0.0 

42 

94 

22* 

114 

165 

L6 

198 

130 

2.4 

178 

129 

1.6 

159 

300 

L0 

331 

48 

3.1 

58 

90 

26 

107 

184 

3.7 

246 

107 

3a 

143 

196 

20 

200 

185 

21 

247 

151 

L6* 

161 

56 

0.5 

61 

307 

1.6 

383 

310 

24 

t 

276 

L3 

317 

50 

0.0 

59 

267 

26 

353 

181 

3a 

226 

106 

28 

143 

323 

29 

438 

92 

0.4 

120 

148 

3.1 

186 

116 

4J 

139 

107 

4a 

138 

79 

Ll* 

107 

102 

21 

132 

117 

LG 

149 

107 

3£ 

143 

80 

3.4 

97 

78 

4.7 

108 

184 

oa 

242 

6 

ao 

5 

97 

L4 

137 

134 

0.8 

1S6 

205 

L2 

275 

120 

0.3 

172 

114 

oa 

114 

81 

4.1 

96 

345 

QjO 

461 

60 

oa 

81 

126 

oa 

1S2 

703 

oa 

864 

159 

oa 

217 

231 

08 

296 

65 

0.1 

79 

125 

03 

154 

72 

L3 

62 

169 

0.4 

189 

55 

5.1 

66 

67 

0A 

87 

142 

0.6 

186 

63 

2a 

69 


Tbtal Return 


eugrapii 

Nth. 

Amec. 

9 

Japan 

(9) 

<M> i 

Other 

< 5 ? 

Gearing i 
Factor ' 
CU) 

base- 100 

onNLA.V 
over 5 years 
to3LuX87 
(12) 

base-100 

Tbtal 

Net 

Assets 

£mUUon. 

38 

8 i 

' 5 

90 

230 

399 

28 

6 : 

15 

111 

279 

159 

17 

17 

8 

88. 

240 

76 

14 

2 

12 

109 

247 

227 

15 

13 | 

10 

91 

251 

41 

25 

15 

16 

111 

287 

166 

15 

6 

3 

96 

284 

164 

7 

l'" : 

18 

119 

282 

251 

3 


7 

96 

313 

133 

22 

- , 

9 

114 

290 

197 

14 

5 

4 

100 

272 


4 

- 

1 

99 

313 


16 

12 

20 

. 116 

269 

11 

39 , 

7 

5 

9Z 

235 

20 | 

12 

11 

112 

250 

t 

20 | 

10 

13 

106 

300 

83 


INCOME GROWTH 
British Assets 
East Scottish American 
General Consolidated A 
Investors Capital Ttast 
Lowland 
Merchants 
Murray Income 
Murray I nternation al 
Raeburn 

Securities TFostafScotiand 


Ivory fcShne 
DunsdraFVmd Managers 
Independently managed 
Ivory & Sime 
Henderson 
Klemwort Grievesan 
Murrey Johnstone 
Murray Johnstone - 
Lazard Brothers 
Martin Currie Inv. Man. 


SMALLER COMPANIES 
Continental Assets (w) 
Dundee & London 
Enghflh& International (w) 
F&C Alliance 
First Charlotte 
Fleming Fledgeling 
Kleinwort Smaller Cos. 
London & Strathclyde 
London Atlantic 


20 

22 

11 

65 

— 

2 

23 

6 

13 

-2 

3 

SO 

10 

4 

14 

8 

2 

49 

21 

6 

23 

- 

_ 

94 

39 

21 

25 

33 

15 

23 

5 

- 

74 

21 

, - 

4 

_ 

_ 

100B 

26 

1 

8 

45 

7 

34 

23 

14 

34 

19 

10 

26 

11 

13 

65 

— 

— 

90 

34 

39 

27 

r 

t 

t 

7 


6 

- 

- 

100 

37 

27 

22 

37 

12 

15 

6 

11 

9 

25 

12 

16 

17 

11 

10 

20 

11 

12 

33 

5 

13 

73 



71 

3 

1 

91 

_ 

_ 

74 

_ 

1 

68 

_ 

1 

86 

- 

- 

_ 

_ 

35 

3“ 

. 60 

34 

- 

_ 

92 

16 

58 

22 

- 

68 

32 

1 

53 

38 

_ 

75 

18 

- 

_ 

97 

— 

— 

100 


100 


- 

100 


- 

100 

- 

2» 

93d 


» 

97 

_ 

2 

81 


- 

68 

- 

- 

99 

- 

58 



63 

— 

27 

33 

- 

24 

39 

9 

3 

32 

13 

4 

47 

8 

5 


North British Canadian 
St Andrew 
Scottish American 
Smaller Companies Int 
Strata In v estments (w) A 
TR Trustees Coro. 


Ivory & Sime 
D taw dm R aid Man agers 
MIM 

Foreign iOnkmial 
Ivory & Sime 
Robert Fleming 
Klemwort Grievesan 
Gartmore 

Investors in Industry 
Independently managed 
Investors in Industry 
Martin Currie Inv. Mon. 
Stewart, Ivory 
Edinburgh Fund Mgra. 
Henderson 
Touche, Remnant . 
Throgmortonlnv Man. 


SPECIAL FEATURES 
Afina A 

Cqpaolklated'V fentnre( w) 
Drayton QnrainlMntintl 


Flaming Enterprise 
Fleming Mercantile 
Hamfaros Advanced Tech. 
Independent (w) 
Kleinwort Development 

London Amen \%ntures(w) 
Murray Ve ntur e s (w) 

TR Property 


J. Rothschild 

MIM 

MIM 

Merchant Navy lav. Man. 
Robert Fleming 
Robert Fleming 
7bp Technology 


TrMvwng ft 


KMuwcrt Grievesan 
Bambred AQiri at 
Murray Johnstone 
Tbodae, Remnant 
Throgmorton. Inv. Mato. 
Stewart OUM 


SPLIT CAPITAL (x) 

City & Commercial 88/93 
Flmdmvest 85/90 

Marine Adventure 88 
New Throg. (1983) (w) 08 
Hirer & Merc. Tna*(w) 00 
River FtsteA GenendCw) 96 
Scottish National (w) 98 

T fmigiiwlii Ti roilA 
TYiplevest 87/91 


MIM 

MIM 

Thornton &Ca 
Throgmorton lav. Men. 
River & Merc. Inv Man. 
Jupiter Tarbutt 

Gartmare (Scotland) 

Throgmorton Inv. Man. 


Sure 

Price 

(4) 

pence 

Yield 

(5) 

% 

Net 

Asset 

Value 

(6) 

pence 

G 

UK 

(7) 

% 

■eographical Spread 

Nth. 

Amec Japan Other 
(8) (9) (Iff) 

% % % 

Gearing 

Factor 

<U) 

base-lOt 

62 

53 

77 

63 

32 


S 

109 

355 

5.1 

432 

97 

2 

- 

1 

103 

329 

6.0 

402 

76 

20 

— 

' 4 

88 

294 

62 

356 

100 

- - 

— 

■ - 

100 

193 

32 

161 

90 

2 

— 

8 

104 

127 . 

. 5-8 

159 

.82- 

15 

.. — 

. a. 

97 

169 

5L5* 

196 

79 

9 

_ 

12 

107 

157 

4-8* 

194 

50 

28 

14 

8 

96 

387 

53 

485 

70 

19 

7 

4 

95 

89 

53 

109 

67 

19 

8 

6 

106 

77 

L8 

92 




100 

98 

245 

33 

t 

t 

t 

t 

t 

r 

200 

3.1 

232 

66 

24 

9 

1 

108 

59 

2.4 

72 

52 

20 

14 

14 

105 

16 

4.6 

15 

97 


3 

- 

104 

168 

2.1 

209 

76 

22 

2 

- 

97 

496 

2.6 

514 

99 

- 

- 

1 

98 

203 

2a 

249 

79 

20 


1 

105 

276 

8.6 

306 

81 

7 

_ 

12 

99 

166 

43 

184 

93 

1 

_ 

6 

93 

335 

a a 

437 

97 

2 

- 

1 

112 

148 

3.6 

184 

71 

15 

8 

6 

98 

77 

3-6 

103 

60 

22 

4 

14 

86 

100 

L4 

108 

84 

7 

9 

- 

105 

98 

0.7 

119 

60 

17 

13 

10 

• 95 

99 

3.0 

119 

73 

19 

7 

1 

109 

374 

as 

453 

97 

2 

— 

1 

116 

135 

23 

150 

57 

26 

5* 

32 

90 

165 

oa 

197 

38* 

60 

_ 

2 

82 

420 

33 

521 

77 

17 

4 

2 

94 

- 72 

13 

80 

74 

17 

1 

8 

114 

95 

&4 

113 

100 


- 

- 

109 

158 

aa 

216 

75 

22 

1 

2 

76 

198 

03 

175 

77 

22 

_ 

1 

99 

41 

2.1 

52 

31 

62 

- 

7 

88 

225 

33 

267 

100 

_ 

_ 

— 

68 

42 

03 

64 

29 

71 

_ 

_ 

75 

233 

3.1 

283 

87 

6 

2 

5 

87 

77 

23 

98 

78 

5 

3 

14 

97 

126 

1.7 

139 

98 

2 

- 


111 

51 

3-4 

54 

99 

1 


_ 

125 

965 


1160 

82 

9 

8 

1 

107 

450 

— 

516 

79 

10 

9 

2 

105 

285 

— 

249 

44 

10 

- 

46 

90 

88 

— 

197 

99 

z 

_ 

_ 

128 

58 

— 

153 

79 

21 

- 

_ 

188n 

58 

- 

t 

t 

t 

t 

t 

t 

43 

— 

96 

80 

11 


9 

111 

335 

- 

664 

98 

2 

- 


100 

1115 


1447 

92 

7 

1 


111 


Tbtal Retzto 
OqNAV. 


NOTES TO THE TABLE 
t Nodata. 

* Applies to OrdinaryT A* Ordinary only. 

■ Mora than one quarter in aon-equiiar 

investments. 

00 CspitaTaharas and winding up dates. 

■ Incorporates recent revaluation of 
unlisted investments. 

sc Adjusted Tor scrip fame, 
ar Adjusted Tor rights iwuo. 

(q) Published quarterly. . 

(w) Company has warrants or optima in iaaac. 

♦ More than 20M> in Mooritlee or other 
assets included at directors' valuation. 


INDICES OFETVE YEAR 
TOTAL RETURN 
+ Investment Trust Average S87 
F.T- Actuaries All-Share 279 

* Standard & Poors Comp. 211 

* Tbkyo New Stock Ex chan g e 0B7 

* Morgan Stanley 

Cap. hit. World 319 

+ Excludes split capital. 

' * Adjusted far exchange rate 


You’ve got to spend 
Money to make money 


securesyauaccpyofHowtoMakelT. Teliingyou 

how Investment Trusts work, how to buy shares in them 


A The Trnsthaspraririona fora Hunted Efe. 
Please refer to the company for further 
information. 


■■fahla on raqnrat Cram The Secretary, 

ThaAasBctaMoQofterastowriUtert 

O ocn pan l ra PMfcHwsPihWaorit 

M PtaMtay Cbooa. London BCM 7JX 
T*tH-K»S 3 « 7 . j :’. r— , 


Or yoor £5.95 brings a copy of More Shares For Your 
Money, hfll advise yaa which Trust is best for you, what ' 
retomuiytjacan expectand how toplan your portfoJio. 

Of coarse you could bay both. We think they’re an • 


enar a itn al ^v mliiiuuL 


n Figures not directly c omparab le with 
previous month. 


Cola. 1,4 to 6 Figures supplied by 
Wbod Mackemfe&Co. Ltd. members of 
*I1» Stock Exchange. The figures in Cols lAG 
are simulated to date shown based an latest 
valuation supplied by the companies and made 
available to The Stock Exchange. 

Colli The graringtactor incficstea the 
percentage amountby which the net asset 
value per share would rise if the value of 

the eqmly assets increased by 100 per cent 


ifil 


(6th Floor), 16 Fmabuiy Ottos, London EC2M7JJ.Td: 01-5885347 
Please send me «wpy/ieaetfthe 1987/8 edition of 

‘Howto Make IT® £695 each haipftp in thaUK/£7.50 overseas. 




M0M/e£5£5 each map&p in the UE/A7.50 overseas. 

Iendoeecheque/POfer£ toadapaysfaletotiieAITCL 

(block capitals PLEASE} 


,K»> f 


,flH 


. V 

* ' , : * 14 






* 

■»>" •' 
Jr«* 


. 6* * ' 
•» •’ 


* 1 -• 

r.. 1 ^ - » 1 


”erite 




Investment Trusts 


Afcrmujm or ivuedsso raw cnarwiiB ■ 


| ffyoaaraM InvBstaaentadv^ please iadkatovo u i 

l StockbnAarQAooouotantDScdiisfavDIhaDrenceBraha'O 

| Bm hgQOtherinveatmentedvfaern 


cie&vijj-ijS 




Financial Times Saturday November 28 1987 


WEEKEND FT IX 


• TRAVEL- MOTORING 


House 
ora 
home? 

I®it possible for t re tir ed 
p*™o» who is not a. UK dtt- 
***** not & TJK resident and 
has domicile outside the UK 
to own a honse/Oat in the UK 
used for, say, three months a 
year for holiday purposes 
without ineoniag liability for 
UK Income tax? My reading of 
EBO suggests that this la not 
possible but if so it would 
appear to be at variance with 
practice elsewhere in the 
KBC, And would any liability 
so incurred refer to the whole 
of that person’s income dar- 
ing the tax year or only **»»» 
pert accruing in the period of 
hi* stay in the UK? 

The answer to your first ques- 
tion is no, as you expected from 
reading IR2G. The UK tax liabil- 
ity would apply for the whole of 
each UK tax year income and 
capital gains - but the assess- 
ments (on the remittance basis) 
might be partly based on the pre- 
ceding year’s remittances, and 
the effects of dual residence 
might be mitigated by a double 
taxation agreement with the tay- 
payer's home country, for exam- 
ple. Tat systems within the EC 
are still a long way from har- 
monisation, unfortunately. 

Survival 
clauses 

My wife and I are both 60 said 
have two married daughters. 
The teoancy of our house is 
already held as Tenants in 
Common’ and both our wills 
stipulate that the monies, go 
to the survivor and then to 
the daughters. There is a 80- 
day survival clause wr itt e n 
into the wills and a Deed of 
Variation Is also lodged with 
the wills. - 

To reduce Inheritance Tax, 
is it necessary to write into 
the wills that, on the death of 
either of us, <n»e half to left to 
our daughters or can that be 
achieved by the use of. the 
Deed of Variation -after the 
first death? Would the same 
answer also apply if both of 
■a were killed inn car crash? 

It is not clear from your letter 
whether your wills provide for 
the testator’s share in the house 
to pass to the survivor or only 
for other assets to do sa For 
Inheritance Tax purposes it is 
better if the share of the first to 
die goes to the children straight 
away. It is also unclear what pro- 
vision is made by the Deed of 
Variation to which you. refer. 
The 30-day cl a use is designed to j 
avoid the problems presented by 
simultaneous or near-simulta- 
neous deaths. 



*» tof rwpoMftny cm ta mxmpm* 
ft? #• FhmU TJm&t fertto wm s*m 
*» ttmm Botom MtoquMm wtt be 
•RMndHypotfumnspoWfito. 


when the shares are sold (or 
transferred to' a legatee), pro- 
vided this o cc u rs within one 

year of death? 

inheritance tax liability is to 
be calculated on the value as at 
the date of death. A transfer 
after a Call in rite market will 

avoid capital gains tax. 

Growing 
problem 

I live In a bungalow with 
access to the road np a con- 
crete track owned by the 
house at the end of the track. 
There is one other cottage 
along it. Opposite Is a field 
and the farmer who rents this 
to responsible for cutring the 
bodge on both sides, which he 
last did three years ago. 
Efforts by ns to cot the lu 
have brought promises by 
to do so, but no action. He 
has been beard to remark 
that he cannot cut it because 
it is now too t&lL Tfee track is 

narrow and the hedge will 
soon prevent access. 

Is there anything we 
do? Does the landowner of 
the field have i w p o nrihfflfy 
if his **»—»♦ fans to eat the 
hedge? 

Unless there is an e x p r e ss 
grant to you of right of way in 
terms which state that the 
vient owner must keep the 
trimmed - which is most 
- the responsibility for making or 
keeping the access road passable 
rests with the dominant owners 
ie those who wish to exercise 
their right of access. You cannot 
therefore require the servient 
owner or his tenant to trim the 


Inherited 

values 


Please put me out of my mis- 
ery! I have a question regard- 
ing the valuation of shares 
for inheritance tax. The 
deceased died Just before the 
recent share price collapse. 
Share valuation for granting 
of probate to based on prices 
ruling on the day of death. 

Most the final reckoning of 
inheritance tax be based on 
the above only, or on the 
amount actually realised 


Untimely 

delay 

I purchased 1100 shares in 
British Gam on privatisation, 
of which I have the eertttf* 
cate. On June SO 1987 I 
decided to increase any hold- 
ings to 8000, so I instructed 
my bank to purchase 1800 
shares (of which I received 
the contract note) tor settle- 
nt July 20 1987, toe cost 
being debited to my account 
on July 21 1987. At toe time 
of writing - October 17 -I am 
still not In receipt' of the' 
sham certificate- for these 
1800 shares; • 

I received the ' dividend 
voucher early In October 
1987, but noted a discrepancy 
In my share certificate for 
these 1800 shares. At my 
bank’s request I returnee ton 
dividend voucher to these to 
sort out this discrepancy. . 

1 have heard that Big Bang 
can affect and delay the 
transfer of shares certificates 
and would like to kaow If this 
three month s delay Is saaaL 

The delay is longer than it 
shook! have been, 2 the bank 
does not procure the regutoriaa- 
tSon of the position promptly you 
should refer the matter to the 
surveillance section of toe Lou- 
don Stock Exchange. 


David Walker visits Europe’s most secretive country, which has recently opened its doors to tourists. 

Guarded welcome for Albania’s new invaders 


IN THE central square in Tirana 
a policeman in blue uniform 
blows a whistle and gesticulates 
vaguely -at groups of pedestrians. 
He is on point duty - but there Is 
no traffic. Ever. Just an occa- 
sional overcrowded bus or 
ancient lorry belching fumes, a 
cyclist or two weaving slowly 
through the crowds on foot, and 
the odd horae-drawn vehicle. 

A few hundred yards away, by 
the city's central park, two sets 
of traffic lights go ridiculously 
through their mum-lit act, com- 
plete with cross/don't cross signs 
for pedestrians. They need not 
bother for this is Albania, where 
the private car is banned. 

Albania to Europe's poorest 
country and eastern Europe's 
smallest, with a population of 
3m. And it has traditionally been 
one of Europe’s most closed soci- 
eties. In the tost two years, how- 
ever, since the death of Enver 
Hoxha, In power since 1944 and 
the Communist world's longest 
serving leader - a feat achieved 
in part by a vicious regime of 
forced labour camps for political 
dissidents - there has been a cer- 
tain amount of opening up. 

An existing tackle of tourism 
is being allowed to g ro w slowly - 
not, your Albanian guide will 
soon tell you in impeccable 
English, as a means of earning 
foreign currency, but to promote 
international friendship. 

The wariness of foreigners is 
apparent at every moment. The 
countryside, fought over by dif- 
ferent invaders throughout the 
last mfllenhxm, is covered in all 
directions by concrete pillboxes, 
while the towns are foil of post- 
ers urging the people to maintain 
vigOanoe In pursuit of the revo- 
lution. ■ 

The frontier crossing' from 
Yugoslavia, desolate and ill-lit, 
immediately appears to confirm 
one’s worst suspicions about the 
country. Our group of 35 arrived 
in the dark and achieved a rela- 
tively perfunctory exit through 
the Yugoslav easterns house. The 
bus which, had brought us from 
Titograd airport turned back, for 
no -vehicular traffic is allowed 
through by the Albanians. 

.. We walked 50 yards down a 
virtually unlit road to a great 


wire fence with a angle gate on 
which swung the one Bright 
“ it anywhere. Passports were 
ktitely scrutinised, faces 
checked carefully against photo- 
graphs on the group visa. It was 
all done with absolute courtesy, 
even a few smiles. But that was 
not enough to eradicate the air 
of menace. 

After the passport check we 
passed through the barrier, up 
crumbling steps to a decrepit 
customs house with immigration 
and customs forms to fill in - 
were we bringing in books? 
Money? Drugs? Cameras? Who 
invited us? What were our 
fathers’ names? 

A lone bottle of English gin 
looked forlornly out or a glass 
display esse built under a set of 
tired green pot-plant flanked 
stairs. A sign suggested they led 
to a cafe, oat there was surely 
never any such thing here. 
Alongside the gin were half-a- 
dozen bottles of Albanian brandy 
and a handful of A ^ tan W n - TnB| 1» > 
souvenirs. 

The forms were handed in, 
every suitcase opened, and bocks 
scrutinised, with at least one 
travelogue on Albania published 
In the West confiscated, to be 
returned on its owner’s exit from 
the country. Such pillars of recti- 
tude as the Dally Telegraph and 
Financial Times were checked 
for pornographic content, but 
Judged not to contain any and 
therefore suitable for imparting. 

And we were through, with 
our English courier ana two 
Albanian guides, to start a four- 
night tour of this most secretive 
of European countries. 

It is not an attractive country. 
There to no night life, no attrac- 
tive bars or cams in which to sit 
and enjoy the balmy autumn 
evening. But toe of 

being able to walk around streets 
few western Europeans have 
been in has an appeal of its own. 
And you are free to stroll where 
yon will, unaccomi 
guides, and to take pi 
' that you avoid 
Ltdons and the soldiers 
who are everywhere. 

Our first visit was to the 
ancient city of Shkodra^ reached 
at night after a drive during 



■toffiatohc ■ AA . /fi i i . i- i ■■ ... j . r . 


A street scene in Tirana, b tpM of Europe’s poorest country: the city proves more fascinating than 

attractive. - 


which unlit bicycles farmed fre- 
quent hazards along with the 
occasional flock of sheep and 
horse- or bullock-dzawn wagon; 
vast lorries hurtled towards us 
with much hooting. 


mans, with attractive balconied 1950s. Another mosque within 
buildings and elegant street. On the castle itself to no longer 
warm October Friday evening recognisable. 


containing people to 
you or measure your 


the street was alive with people. 

Shkodra is dominated by ittf 
ancient castle guarding the 


largely 

country. Dominated by modem Enver Hoxha and the Party at its 
but crumbling concrete build- summit. Just below it to a 
ings, It possesses a shopping mosque, one of the few left 
street which can have changed sta ndin g when religion was offi- 
Httle since the days of the Otto- dally abolished in the early 


Special hotels: this week, the Gmd Hotel, East Bertha 

Champagne socialism 


BRIDGE 


'HE BRIDGE world has been planned a dummy reversal from 
mpoverished by the death of trick one. He made seven trump 
jswis Ellison. He was a great tricks, two spades and one club, 
tlayer, highly respected.and a _ We fly to Portu^lfor Open 
- - ■ * -» — Pairs: 


>eiy close friend of mine. We 
Oayed together in London and 
n various parts of the world. We 
tart noth a rubber from a Lon- 


ion dub: 

N 

♦ AT 
10987 

♦ 8753 

9 1074 

W E 

MC6 49842 

9Q6S32 f - 

f AQ J 9 2 ♦ KI0 6 4 

86 4KQJ93 

♦ Q 107 53 

V AKJ4 

♦ A852 

At game all Lewis dealt in the 
oath seat and lad one spade, 
fest overcalled with two dia- 
londs, I passed, and East said 
tree diamonds. South now rebid 
tree hearts, West passed, and I 
used to four hearts. After two 
asses West’s double brought the 
action to an end. 

West opened with the ace of 
iamonds, whifch was ruffed in 
and, and declarer returned a 
jade, finessing the knave on the 
ible. When utto held, he led 
ummy’s five of diamonds and 
if fed, returned to the see of 
jades, and ruffed a third dia- 
iond. Now my partner cashed 
is ace of clubs - this was impor- 
int, for West was dearly short 
i clubs, and If he helda * 


N 

4KJ4 
9 64 


t 


4 Q 10 8 2 

I A93 
4 9532 


i, it might be fatal to give 

> chance of discarding it. Then 
? spade queen was ployed, 

st rafted with hto queen of 
arts, on which dummy let go a 
ib, and returned a heart to the* 
*, now singleton. 

Phe contract was at this point 
rare, for dummy’s three 
imps were masters, but tewfe 
1 the 10 of sp&desAnd when 
st ruffed, threw dummy’s last 
LiTKmd. He claimed the three 
arts and conceded one club. 

Ay partner was pretty sure 
tt west held five trumps and 


765 
J 8 7 64 
W 

4 A9 76 

V K J 9 87 3 

. 

453 „ 

4 A 10 5 

4KJJ0842 

4KQ 

With neither side vulnerable. 
North dealt and after two passes 
South bid rate no trump, 1 dou- 
bled with the West emus, and 
everyone passed. North might 
have Ud two dubs over my dou- 
ble, but surely South should 
have rescued himself with two 
diamonds, perhaps he t h ough t 
we looked easy meat. 

I opened with the eight of 
hearts, the queen won, the two 
was returned to the 10 and 
knave, and a third heart cleared 
my suit. On this trick Lewis 
threw the eight of spades, and 
when the dub king was played, 
which I captured at once/he fol- 
lowed with the three. I ran my 
three hearts, on the first of 
which Lewis threw his two of 
dubsAnd on the second the five. : 

Now I knew that the dub suit 
was a frozen asset - it waa 
blocked - so at trick eight I was 
able to M & low spade. Dum- 
my’s knave was played, Bast 
won with the queen and 1 
returned the 10, which I could 
duck without fear. The king 
and a diamond was return 
from dummy- Lewis won wi 
hto switched to the two of. 
spades, allowing me to makej 
nixie *nd ace ana beat toe con-j 
tract by four tricks. 

How pleasant to play with a; 
partner who makes things easy 
for you. 


E P C Cotter 


NOTHING prepares one for East- 
ern Europe's most luxurious 
hotel 

At Checkpoint Charlie i 
point In the Berlin Wall a 
clous East German customs offi- 
cial takes a wyy my Financial 
Times and a West Berlin newspa- 
per and disappears Into a ride 
room. He re-emerges with the 
papers « few minutes later, how- 
ever, apparently- satisfied they 
are for my eyes only. 

Carrying our bags - no tads' at 
the wall - my wife and l trudge 
through East Berlin’s back 
entrance; Friedrichstrasse, whit* 
ontf vast construction site. 
From . some distance we can 
make out our weekend hideaway 
in East Berlin, the Grand Hotel. 
Financed by toe Japa n ese and 
built by the Swedes, the impres- 
sive post-modern building stands 
at the comer of Friedricnstresse 
and Unter den linden, the pre- 
war heart of Berlin. 

For a mere DM 80, hotel guests 
who arrive at Tegel Airport In 
West Berlin are spared the bor- 
der controls. They are met by 
the hotel's Volvo limousine and 
are whisked through toe wall 
with a minimum of formalities. 

Ogled by East German tourists 
who regard the newly opened 
Grand as a seventh wonder of 
socialism, we enter the sumptu- 
ous lobby and leave East Berlin 
and its sabd burghers far behind. 
Thick Axminster carpets, a beOe 
epogue staircase and cat glass 
chandeliers only hint at what is 
to r nm> * 

The beautifully appointed 
small suite at DM 480 a night 


rivals any I have seen In the 
West. No detail has escaped man- 
agement's attention including 
the lace bantered bed linen and 
a range of useful and compli- 
mentary toilet articles. Thick 
terry doth bath robes and dogB 
toy ready for- the pooL I have 
stayed In Budapest’s Forum 
Hotel, hitherto Eastern Europe's 
finest. But this one to unadulter- 
ated luxury. 

J try out the TV as irr the East 
German hotels I stayed in in the 
1960s the TV sets had toe West 
German channels tuned out. 

Nothing of the kind here. The set 
even receives the British Forces 
channel. France’s Antenna 6 and 

stock market quotations from - . . . 

West Berlin. The view from the hantin^styte 



Touch of Class 

It's cocktail time but Instead of 
nuts we are served Kultur with 
our drinks. An organist plays 


iPetrus Pomerol for DM 790. The 
view, though, dashes wish the 
luxurious ambience It to out to a 
peeling wall advertis ing t he 
Democratic Feasants Federation. 
But the service is excellent here 
and throughout the Grand. East 
Germaity has a top flight hotel 
school in Leipzig and only toe 
most successful graduates make 
it to the best hcwtelriea. „ 

But what does a jaded busi- 
jtessman do in East Berlin in the 
evening. Thete's plenty of good 
opera and theatre but night life 
tends to be low key. Those who 
seek the fleshpots must Insist on 
a multiple entry visa so that 
they can visit West Berlin and 
back to their hotel In the 


At the foot of the castle walls 
small children emerged with lit- 
tle posies of wild flowers and 
herbs which they handed at ran- 
dom to the visitors. One or two 
pens or chewing 

most seemed happy 
home-made gifts to 
be accepted. Stage-managed? 1 do 
not think sa 

Later that day In open coun- 
tryside we watched a group of 
women washing clothes in a 
river. They were using a great 
metal drum in which to heat 
water over an open fire and then 
rinsing the clothes with a giant 
test-iron pump in the river bed. 

High in toe mountains nearer 
Tirana is Krqja, with its ancient 
castle housing the Skenderbek 
Museum, a celebration of 
Albania's 16th century national 
hero who secured the country a 
brief independence from the 
links. 

Northern Albania’s main resent 
Is on the coast at Durres. At 
night it was attractive though in 
the morning reality intruded. In 
Tirana I was to see a photograph 
of Durres beach covered with 
bright umhreHas and people. In 
with concrete 


fact it was covered 1 


blocks. 


the ubiquitous 


pOIboxea. A diving platform lay 
half submj 


hotel window is symbolic if not 
beautiful. In the foreground is 
the tower of the hulking Soviet 
Embassy and behind it the 
Reic h stag in West Berlin topped 
by an oversized floodlit German 
flag. In the distance I can just 
make out West Berlin's Europe. 
Centre with its revolving Mer- 
cedes star. 


Room before a xoanng fire. In a 
major faux pas I fry paying for 
the drinks with East German 
currency, the sight of which 
evokes a somewhat pained 
expression from the waiter. Ever 


submerged and on its side in 
the water. 

Durres houses one of Albania's 
moot spectacular sights, a Roman 
amphitheatre said to be one of 
Europe’s largest, with some 
exquisite mosaics in a chapel 
underneath. 

Tirana, whose population has 
grown from 40,000 40 years ago 
to 260,000, must be Europe's 


The pool turns out to be as 
empty as the rest of the hoteL 
General manager HeUmut Froefa- 
lich expects the 
pancy rate to climb well above 
the 36 per cent level it stood at 
shortly after opening last 
August Negotiations are under- 
way, he says, with Leading 
Hobris of toe World and toe goal 
is to attract senior and middle 
ranking executives from Western 
Japan, the US and the 
East 


The Grand has several special 
programmes available including 
a tour of the lakes and water- 
ways in East Berlin on the 
hotel's yacht as well as excur- 

„ . sions to Dresden and Meissen. . ... _ _ . _ 

Wo take tmr own tour though 3»*t appealing capital city, 

*«d on returning to the Grand* despite its superb mountain set- 

u .^E2£S 4votel employee approaches in tmg. Its central square, with 

wil **»• to inform us in Ger- gaudily titomtaated fountains in 

H 1 nan that we cannot go u pst a irs. *he middle, is surrounded by 

Kb embarrassing all right but on menblitoic concrete save for an 

ten even for tipping in this hoteL learning the we are hotel guests mosque left standing in one 
Mr Froehlich assures us she excuses herself profusely, corner. The broad boulevards 

though that the Grand Hotel is The incident is a reminder that which approach it are lined with 

Grand's occu- -J00 per cent Socialist*. He although Westerners are given dowdy shops, but there is a 

mil ah am that the "outward red carpet treatment here. East pleasant central park and some 


kiosks 
weigh 

The National Historical 
Museum has some glorious Grae- 
co-Roman artefacts but then all 
but skips the next 1700 years to 
move to the usual paean of 
for Enver Hoxha and his 
lunist partisans for secur- 
ing the country's liberation in 
1944, ignoring any other groups 
involved. The Museum of 
National Ethnography is to be 
recommended, while the 
Museum of Economic Achieve- 
ment is full of modem Albanian 
industrial artefacts. 

We visited the Martyrs’ Grave- 
yard, reached by a pleasant drive 
past the main Government 
offices and through attractive 
tree-lined streets. Tne graveyard, 
containing the tombs of the 
country's war heroes and the 

K ve of Hoxha, is high above 
town, past the former royal 
palace of the late and unla- 
mented King Zog. We also 
attended a lieder/o peratic aria/ 
chamber music recital (yes, 
really) which was of an astonish- 
ingly high standard and most 
enjoyable. 

Our hotels were generally ade- 
quate, though no more, with pri- 
vate showers and lavatories. 
There are no plugs in the wash- 
basins, and tight bulbs are 
always missing. The food ranged 
from adequate to disgusting. A 
bottle of palatable Albanian 
wine was around 65p, mineral 
water 18p. You are advised not 
to drink the tap water, though 
several of us did so with no ill 
effects. There is virtually noth- 


injjelse to buy. 


explains 
appearance and form* may be 
toe same as in the West but that 
the earnings are distributed dif- 
ferently. 

We have dinner in the hotel's 
Silhouette Restaurant which 
offers Malossol Beluga caviare at 
DM 94 and a 1976 Chateau 


Germans with their soft Marks 
are not. 

• Grand HoteL Friedricha- 
traaae 188-164, DDK - Berlin 
1080 

- Telephone 80 92 22 20 
Telex 11-6198 GraboDD. 

Leslie Colitt 


old- 
the beat 


houses. One of 
now the Cuban 


As elsewhere, national cos- 
tume is still relatively common. 
Ice cream (9p and very palat- 
able) and reft drink (again **- 
and rather resembling cou 
medicine) kiosks abound, as 


the hotels, hard currency 
shops sell tacky souvenirs plus 
some quite attractive silver fili- 
gree earrings for a pound or so a 
pair. But toe big attractions are 
the works of Enver Hoxha, 
which in English translation at 
least are hilariously unputdown- 
able. These must be posted to 
Britain for Yugoslavia allows no 
printed material from Albania 
through Its border. 

My visit was certainly not 
relaxing I am not even sure that 
it was enjoyable. But it was a 
fascinating experience. 

• My five days In Albania 
cost me S80S for frill board, 
including £60 single room 
supplement, through Voyages 
Jules Verne, 10, Glentworth 
Street, London NW1. 


Stuart Marshall repmts on 25 years of Car 
magazine, the first motoring publication to tread 
on the toes of the major m a nufactu rers 


Driving off the opposition 


BREAKING THE mould has 
become a tired old political 
cliche, but it describes what Car 
toagarine did to specialist motor- 
fog publishing. Until Car came 
on the scene 25 years ago in 
1962, the weekly and monthly 
journals tended to be more defer- 
ential than critical, though they 
were not as bed as they had been 
tan years earlier. 

Perhaps it was ail due to the 
shortage of cars in the post war 
period, fri toe early 1950s toe 
British manufacturers could 
have sold every car they pro- 
duced several times - over. 
Waiting lists were counted in 
years, not months. Discounts 
were unheard of and imparts as 
scarce as toe domestic product. 

Critical road tests of almost 
unobtainable products would 
have horrified magazine adver- 
tisement directors. I doubt that 
toe readers would have had 
much patience with them either. 

ey wanted to be told that the 
car for which they had put their 
name down months or years 
before was everything they 
hoped it was going to be. 

To be sure the ashtray might 
have been better placed or the 
interior &gbt brighter. That kind 
of comment they could taka But 
to be told that toe object of their 
longing cornered like a runaway 
milk cart and had the ride com- 
fort of a tumbril? They did not 
want to know. A road test of a 
top-class car like a Bentley in 
those days was an exercise in 

about thecm^liesign muTpej? 


lormance was wonderful, though 
some features were even better 
than the others. 

I used to buy 'Autocar* every 
week then. I can still recall toe 
surprise with which 1 read its 
road test of the first Van shall 
Victor. Some readers may 
remember the car. It had chro- 
mium plated bosoms on the 
bumpers, a knee-exacking wrap 
around windscreen ana body 
sides that appeared to have been 
Inexpertly repaired after a nasty 
accident. It was a car no honest 
observer could have helped 
being rude about and 'Autocar,* 
by toe standards of that time 
and to ha everlasting credit, sav- 
aged ft. The shock waves must 
have rattled around Luton for 

That, I suppose, was 80 years 
ego. TO the best of my recollec- 
tion the article was a one-off. It 
certainly did not start an imme- 
diate trend for warts and all 
reporting on new products in toe 
establishment motoring week- 
lies. 

. For that kind of no-holda- 
barred writing one had to buy 
“Motor Sport/ Largely the work 
of one man, KB Boady, it had 

many eccentricities. An article 
might start on page 23, be con- 
tinued on page 65 and then end 
on page three. Design was non- 
existent The pages were grey 
slabs of small type, unrelieved, 
by cron heads or even breaks for 
paragraphs. ' 


writing made the effort worth- 
while. Motor Sport’s account of 
Stirling Moss's win in the Mille 
Miglia, written by Dennis Jen- 
Vfoftnn . who rode in toe car with 
him, is toe finest thing of its 
kind I have ever read. Its editor 
had a long love affair with toe 
VW Beetle, later discarded in 
favour of the Mini. 

. Manufacturers whdse products 
were criticised regularly with- 
drew their advertising and Motor 
Sport published their letters for 
all to see. When “Car' magazine- 
burst on the scene it started in 
the way in which it meant to 


continue, raising hackles and 
readers by befog outspo- 


gdning ; 


It was - and is - produced an a 
shoestring by a small organisa- 
tion and has been edited for 
most of its life by a succession of 
young men, mainly Australians, 
who babble with enthusiasm for 
all things four-wheeled. 

They go over the top now and 
again with six-page pieces on 
"drives from Italy to England in 
impractical and Irrelevant 
machines like the Lamborghini 
Countach, against which not a 


breath of critkiam Is made. Its 
contributors are idiosyncratic to 
a man but difficult to ignore and 
mainly a pleasure to read. 

•Car’s* tendency to yell scoop!' 
every month it publishes fuzty 
snatched pictures of still secret 
new models can grate a bit now 
and then. But its habit of print- 
ing all toe facts it can get hold 
of, plus some intelligent guesses, 
about forthcoming products of 
the world’s motor industry 
makes for good reading and 
raised blood pressure in some 
boardrooms, I have no doubt. 

■ Its graphic design and creative 


photography have been univer- 
sally admired and as widely imi- 
tated, which may pose a long 
term threat ’Autocar," for exam- 
ple, now with an ex-’Car* editor 
at Its helm, is starting to look 
like a weekly edition of “Car" 
itself, though it lacks Us men- 
tor’s style. 

Will ‘Car,* and for that matter 
many other motoring iMgatoa, 
survive the next quarter cen- 
tury? I suppose the sporting, ral- 
ana do-it-yc 


i-your- 
b have 



It was a dreadful 
to read, but the'q 


iWication 
of the 


REVISED versions of the 
Peugeot 205 - the SB five- 
door is pictured - go on sale 
next month without any 
price increase. Since its 
launch in 1988 more than 
2m have been made. New 


petrol engines in most mod- 
els are lighter, more power- 
ful and easier to maintain 
and the interiors have been 
revamped. The 17 different 
models range in price from 
£4,745 for a fafady basic 954 


cc^ fb ar sp ee d IE three door 
to £10,680 for a p re t ty eon- 
vextfblc. Over 22 per emit of 
.all 205s add in Britain are 
diesels, which la about four 
times the national average. 


lying, classic car 

self enthusiasts will always* 

to be catered for. But equally, 
more and more of today's motor- 
ists care little for the cars they 
drive except that they be com- 
fortable and trouble free. Are 
they the sort to buy specialist 
motoring magazines regularly, if 
at all? 

I doubt it, though the buyer’s 
type of monthly publica- 
aeems to have good pros- 
l The average car user may 
— . only one copy a year to see 
what is available, but they add 
up to a bigger potential market 
than all toe motoring enthusiasts 
added together. 

SELL 

YOURHOUSE 

Through the 
Weekend FT 
Property Pages 
(y 01489 0031 NOW 


-i 


■ rr ’ 





Country Property 


STRUTT 8.<!» 
PARKER"!!* 


SURREY 


Craydon 3 mfles. (London Bridge/VIctoria 2S minutes) 

M23/2S 6 mfles. Central London 14 mfles _ 

A flna EOwardkn House wtth roegnffl een t tandtapMl gmtaw ia MOtfit 

afar location 

Recaption hal, 3 reception rooms, master bedroom and bathroom suite 
Guest suite of bedroom and bathroom. 3 Artier bedrooms end 2 bamrootm 
Billiard room 

Swimming Root complex: - Heated Pool, changing rooms, sauna and Jacuzzi 
Scargaf&atno 


NORWICH 

Off Unthank Road 


A apadoua Regency bouse kt a secluded 

alfcrotlnn U a| blnn^nll 

SVafaDOfl hi Ba preuHli OT rtOfWOi 

4 Reception rooms, cedar, matter b edroo m wUi 
en-suMa bathroom, 6 further bedrooms, second 
bathroom, attic rooms, double garage, mature 
gardens with hard tennis court 
About % acre 


Region £225,000 


JoM Sofa Agents 
Percy Howm* Co 

3 The Ctu»« 
Norwi ch 

Tat (0603)829892 


Strutt d Mar 
Norwich Office : 

4 Upper Kina Street 
Tel : (0603)617431 


Kiiig+it Frank 
ZZ & Rutlev 



NORTHUMBERLAND 

Berwldk-Upon-Tweed 1 mOe Edinburgh 58 mH«w» 
A flne G eorgian honaa with on parti views over the 
River T we e d, suitable for private or 
institutional use. 

4 Heneption Booms. Wist Floor Drawing Room. 

7 Bedrooms. 3 Bathrooms 
Brteneim Service AooommodaMon Cen trel Hotting 
Woodleade A Temeed Oardea 
AbontS'luiw 

JOINT SELLING AGENTS 
Midhael Aitohison & Partners, Berwiok-Upon-Tweed. 
Tel: (0889) 305158 


PlrHnhurgTi 031 225 7105 

a Kartb Charlotte Street, Edinburgh EKBffiR Telex 7*7455 


Hampton&Sons 



HOKWASH WKALD. EA8T SUBSEX BROAD OAK. EAST SUSSEX. 
DeHghtfal period property with boor Drifebtfid period cottage aat to 1 



The Estate Office, Mayfield. East Sussex TN20 fiAE (0435) 8729M. 


Luxury living in devon. 


Fairbriar Homes 



*"2? PERFECTION SQUARED 


at Richmond 
Surrey 


Ketaond 

fbrfc 



fn ab and o nee 


Open the doorto 
THE GOOD LIFE 


^§€0Mj& $f<game | 


Flats 

from 

£137,500 


Towards the Marches 


HEREFORD HAS never been a 
very county county. The lack of 
really big estates has meant that 
there ate few families that seem 
to have been there forever, so 
the locals are friendly and it's 
easy to fit in. 

Philippa Keeble is an enthusi- 
astic promotor of the border 
country of Hereford and Worces- 
tershire. An incomer heraelf - 
although, unlike most of her cus- 
tomers at Knight Frank & 
Rutley's office in Hereford, she is 
from Yorkshire rather than the 
south east - Keeble is on firm 
ground when she argues that 
“Hereford Is still better value 
than Gloucestershire. People' 
looking for a country house are 
much more likely to find a fine 
house with five or six bedrooms 
and a bit of land for £200,000 or 
so here." 

The extra miles from London 
help explain much, of the price 

a As the fastest rail service 
Hereford to London is a full 
three hours It Is beyond any 
rational daily commuting range. 

There are a few people from 
the far more acoftarible business 
centres of the West Midlands 
moving in. Colin MacKenzle, 
regional director of Hampton ft 
Sons’ West Country Region, says 
that, apart from the buyers seek- 
ing second homes and those able 
to work from home, “there are 
now a large number of regular 
commuters to the Birmi ngham 
conurbation, so it is not only 
those working in Central London 
who are prepared to commute in 
order to enjoy the benefits of 
living in a rural environment.' 

Hereford is no suburb, but nei- 
ther is it as remote as many Lon- 
don-bound people imagine. Com- 
pletion of the MoO from 
Ross-on-Wye has linked the bor- 
der country with the M5 and 
opened up a broad stretch of pre- 
viously hard-to-get-to country- 
side; and since the intercity rail 
services have cut travelling time 
between London and Newport to 
around 90 minutes, Hereford 
incomers who still need to make 
a run to London can do so after a 
pleasant-enough drive south 
through the tourist country of 
the Forest of Dean. 

That said, the number of Lon- 
don exiles bidding for homes in 
the area is surprising, given the 
distances and travelling times 
involved. So who are they? 

In Keeble’s experience, “there 
are a lot of people who have 


pie using computer links to cut 
down the number of days they 
need to be physically based in 
offices in or nearer to London. 
Phillipa Keeble has seen 'lots of 
vaguely arty people. It seems 
that you don't nave to live in a 
garret anymore." 

There are also a number of 
people looking far the good life, 
people who get a goat and who 
have dramatic plans for the veg- 
etable garden. One other reason 
for a relatively restricted price 
range for country homes is that 
neither Hereford nor Worcester 
have as many grand country 
houses as their southern neigh- 
bour, "royal" Gloucester. 

“Most country house buyers 
are looking far properties in the 
£150,000 to £250,000 price 
range," says Phillipa Keeble. 
“Now you don't get many coun- 
try properties under £150,000, 
but then again, there are not 
that many well over £200,000. 
Anything larger that does come 
on the market tends to get 
snapped up." 


£1£00 an acre. But the premium 
for amenity farms is such that, 
on market evidence over the past, 
year, a property with a period 
main house that has scope far 
improvement and which has 
between 60 and 200 acres of land 
attached would now be worth 
anything from £2,000 to S2JBQQ 
an acre. 

Since the local government 
reorganisation of 1974, Hereford- , 
shire and Worcestershire have 


been run as a single auti t artly . 
But redrafting of the county 


As a mixed and fertile agricul- 
tural area with a good number of 
middlosized farms, the country 
residential market leans less 


Just out of London 
commuting range 
John Brennan surveys 
Herefordshire’s 
country house scene. 


upon the rectories and mihi- 
mansions of the south eastern 
shires and more upon the supply 
of surplus farmhouses. 

Unlike the orphan farm prop- 
erties of East Anglia and many 
southern counties, these are not 
homes made redundant because 
of the grouping of a number of 
smaller farms into larger estates. 
The older houses tend to have 


been sold away from working 
farms as they became too large 


for the average post-war fanning 
family. Yet the farms themselves 
are for the most part still profit- 
able. 

As Keeble says, the farmers 
are still driving around in their 
Range Rovers. 7 And as SaviUs’ 
Hereford office notes, since Here- 
fordshire does have the third lar- 


But redrafting of the county 
lines leaves the Malvern Hills as 
-an indistinct border between the 
farmlands of Worcester's Terne 
and Severn valleys and Hereford, 
with its wooded hills around the 
central lowlands of the Wye Val- 
ley, and the higher barons’ castle 
country along the border with 

Wales. 

Given the appeal of the coun- 
tryside here, selling a three bed- 
room house in Fulham tor the 
price of a country home in a few 
acres in the Wye Valley sounds 
an good exchange, particularly if 
there’s £100,000 or so left over 
after the London sale But for 
the real bargains, the agents sug- 
gest town houses In Hereford 
Itself, or country proper ti es just 
across the border in Wales. 

You can still buy Victorian or 
Edwardian family houses in and 
around Hereford itself for 
£40,000 to £50,000, and the 
£250,000 farmhouses of southern 
Hereford and Worcester - which 
are now selling for between 20 
and 25 per cent more than they 
were a year ago - can be 
£100,000 cheaper in the less 
accessible northern parts of Her- 
eford, around and beyond Leom- 
inster. 

That disoount for distance may 
not last long. As SaviUs says:. 
“The Ledbury and Ross-on-Wye 
areas have the widest appeal. 
How e ver, we anticipate that val- j 
ues are more likely to even out 1 
and the northern part of the 
county around Leominster will 
to some extent catch up when 
the north-south Hereford by-pass 
has been created." 

Price-conscious b n yera wflttng 
to cross the Welsh border can 
find even better value but, as K 
F ft R say, the border appears to 
be forming a psychological bar- 
rier. Though queuing up far cot- 
tages and houses in Hereford just 





THIS IS THE start of the 
viewing season for deter- 
mined second home buyers as 
the winter weather begins to 

deter the less hardy from 
wn»HT.<f weekend trips out of 
town. Estate agents generally 
have more time to show peo- 
ple round at the end of the 
year, and as the summer 
queues of would-be buyers. 

window gazers thin out 
there's normally less pressure 
to settle a deal at or above 


the asking price, without a 
chance to really consider 
whether the property is worth 
it or not. Winter is sloo a bet- 
ter time to see whether the 
property that looked so good 
in the sun would be a mud- 
soaked trap out of season- 


The Ipswich office of Strutt 
& Parker (0473 21481) is, 
then, likely to get more pro- 
spective buyers and fewer 
time wasters by patting the 


three bedroom Fir Tree Cot- 
tage in the SnfXok village of 
Earl Soham on the market 
now. It is a 17th century 
house extended in the late 
1960s, part timber frame, part 
brick under thatch, with a 
secluded garden near the vll- 
lage church. Earl Soham is 18 
roues north of Ipswich (that 
60-minute rail service to Liv- 
erpool St) and the agents 
expect offers aronnd 
£130,000 for the freehold. 


Lies and damned lies 


ONE OF the great joys of the 
pocket calculator is that ft has 
empowered forecasters to extrap- 
olate themselves Into fantastic 
extremes. 

Calculators in the hands of 


population experts in the years 
after the Great War would nave 
resulted in Government Health 
Warnings on every marriage cer- 
tificate. And if everyone had 
been able to find the means of 
calculating the forecast value of 


housing In Britain in the period 
of deflation in the early 1930s 
there would have been no sales 


at all as prospective buyers hung 
on until the mld-1940a, by which 
time - on a straight extrapolation 
of price movements at the time - 


a few miles into England, buyers 
cannot bring themselves to look 
a few miles further west if that 
is going to give them a Welsh 
address." The extent of this price 
differential is illustrated by the 


den would have started nay- 
people to move into their 


retired earhr who are selling up 
in the south east and moving to 
a better house here, but there are 
also a surprising number of fami- 
lies with children, where they 
seem to be able to carry on with 
businesses in London quite eas- 
ily." 

Agents say there have been a 
fair few solicitors and other pro- 
fessional people among the new 
generation of Hereford home- 
owners, as well as business peo- 


■ancashire), “investors can 
t a highly respectable 
' from commercial farm- 


agent's recent sale of a fully 
restored four bedroom period 
farmhouse in four acres of gar- 
dens andjmddocks near Brecon 
far £85,000, comparing that with 
a similar property across the bor- 
der: “In Hereford it would have 
been priced between £120.000 
and £lfl0j000; In Gkmcestaramre 
at £160,000 to £170,000." 


Still, buying demand for fam- 
y farms has ensured that resl- 


ily farms has ensured that resi- 
dential values now loam large in 
any analysis of local land worth. 
SavOls r eport s that quality bare 
land in the county with good 
access now sells for £ 1,600 to 


ing people to move into their 
homes. 

But the fact that extrapola- 
tions of current trends invari- 
ably lead to eccentric conclu- 
sions doesn't always invalidate 
the effort In the case of the relo- 
cation group Homequity, its 
recent number-crunching exer- 
cise taking the rate of house 
price increase in six areas of the 
co un try and applying the same 
rate of increase to the next ten 
years, does at least help to 
underline the North South price 
divide: for the effect of the fig- 
ures as they stand is to quadru- 


ple the gap between property 
values in the south and north by 
the end of the century . 

The most striking illustration 
of its theme comes in the com- 
parison between a two-bed- 
roomed terrace house in York- 
shire worth £20,000 today and a 
similar London p ropert y priced 
at £85,000. On its ten-year rerun 
of the 9 per cent annual price 
•rises in Yorkshire and 25 per 
cent rise in London the northern 
terrace would cost £47,347 in 
1997 and the similar London 
property would cost £791,624. 

On the same basis a four-bed- 
roomed detatched house in 
Tyneside costing £51,500 today 
would be worth £121,919 in 
1997. The same property costing 
£166,000 in London would be 
costing £1,536,680 by then, and, 
as Homequity says, figures like 
that would have "serious impli- 
cations for job mobility.* 

On the other hand, calculator 
in hand, it is possible to see what 
-happens if one injects a~ little 
more immediacy into this kind 
of direct line. 

Over the past ten years rite 
values in London Docklands 


roughly S3bn. Now that's a fig- 
ure that would bring tears of joy 
to the eyes of developers cur- 


rently holding Docklands land- 
banks. But it is not exactly prob- 


able, since, as Homequity notes, 
first-time buyers would be quite 


ryers would be quite 

unable to afford properties in the 
south east. 

Taking Hertfordshire as an 
example, the company notes that 
"pay packets will foil far behind 
house prices, with the worst 
house -price -to -income ratio 
today, which is 5.7 in Hertford- 
shire, rising to 11.8 in the same 
area." 

Clearly, if price rises do follow 
this unchanging pattern, before 
the end of the century all of 
Hertfordshire’s semis will have 
to be bought by two or three 
couples all borrowing at least 
three times their joint salaries 
and, no doubt, having to use the 
kitchen and bathroom on a strict 
rota basis. 

On the other hand, the geo- 
graphic imbalance in the raieof 
property price increases could 


have risen by roughly 1,000 per 
cent. Following the logic of this 
forecasting method through to 
1907, an acre of building land on 
the Ide of Dogs would be worth 


Homequity warns of. 


J-B. 




Boars Hill, Oxford 



i *~-- 


* 




MORAYSHIRE 

SCOTLAND 


2,280 ACRES FORESTRY/ SPOKING ESTATE 
Forestry Grant Scheme planting approval on 
1298 acres. Landscape plan for softwood and 
hardwood species blending info the existing 
Speyside country. Adjoining sporting land with 
grouse and deer. Cottage on ate. 



£ 302,000 


Bony T Gamble, Fountain Forestry Limited, 
35 Queen Aime Street London W1M 9TB 
Telephone: 01 631 0845. Fax: 01 580 5237 



CkyCaucc about 3 mils 

A south facing 8 Bedroomed Family House with 2 Cottages. 
Attractive Gardens, Tfami* Court and Wxxfland. 
InaO about 5.58 Acres 



Mayfair Office, Tfcfc 01-499 4155 
and Oxford Office, Teh (0865) 246611 


127 Mount Street, Mayfair, London W1Y 5HA, Telephone 01-499 4155 


A MAGNIFICENT PERIOD 
HOUSE 

IN A WALLED GARDEN 
ON THE EDGE OF A PRETTY 
CONSERVATION VILLAGE 
Nearins completion of rcstorUioa. 
5 Bedrooms ♦ Attics. 3 Bathr ooms 
ind Master suite. 2 Cloakrooms. 

3 Receptions pfaa 
Kitdwa/Breakfiut Room. 03 CJL 
Doable Gams. Stabima. 
PASTUREto rotOTb oy. 
OFFERS INVITED. 


WINCANTON. 



PIMM 01 MI 1166(1 
01 954 5862 fcvayi 
FuOl 661 1773 



Unique opportu nity - to acquire 
a DETACHED CONVERTED 
CHAPEL in a Qdltcra Hamlet. 
Foil of character and encircled 


by farmland, vet jnst 10 miss 
BR (Easton) Met Line, Ml/ 
M25. 3 recep ti on, 2 beds (1 ea 
anile w.c.), cfh, c!We g fatz, coun- 
try kil e faea , bathroom, utility, 
garage, carport, bid swimming 
pool, summer house , plot 100 
aq ft £180,000 Oh. 

(0442)832112 



Choice Homes for the Select Few 



'Durleigh Chase comprises of just six rather 
JLJ superior residences. 

They're designed and buOt to die highest 
specifications and sand in a delightfully 
wooded setting near Knebworth golf course 
— just a short distance from Knebworth 
Station in Hertfbrdshire. 

* Fully fined master bedroom with en-suite 
dressing room and bathroom * Specialist 




fcw-kWi 



a— Mm.*, -v- .-.-■'fiy/nn— 
Rw an appointment to view die furnished dwwbouse, plea« telephone the Saks Department on 
Barra tt Luton Ltd on: 0562 422771, or send die coupon fa- colour brochure. 


"Ick Barrett Luton Ltd, PO Bax 5, Barrett House, 668 HitrVrin Road, Luton LU2 7X3. 


a full range of appliances* Sauna * Feature 
open fireplace • Double glaring and full 

insulation * Digitally programmed gas central 

heating * Security, alarm system and security 
locks * Double garage with work bench and 
electronically operated doors. 

4/5 and 6 bedroom homes from £365 ,000. 


John Clegg & Co. 


FORESTRY & AGRICULTURAL SURVEYORS, 
VALUERS 


■ mrswvf 


DO YOU NEED INCOME TAX RELIEF? 


SCHEDULE D TAX RELIEF AVAILABLE IN 
CENTRAL SCOTLAND FOR FURBISHING AN ESTABLISHED FOREST 
IN AN EXCEL! -ENT LOCATION WITH GOOD ACCESS, COMPACT 
SHAPE AND VIGOROUS TREE GROWTH 
ROUGH SHOOTING INCLUDING GROUSE AND-ROE STALKING 




1.371 ACRES IN ALL FOR SALE PRIVATELY 
EITHER AS A WHOLE OR IN 3 LOTS 


NORTHUMBERLAND/DURHAM BORDERS 


AN OUTSTANDING SALE OF WOODLANDS 
OF INFINITE VARIETY IN AN AREA OF 
GREAT BEAUTY AND INTEREST 


THE NEWBIGG1N ft BLANCH LAND WOODLANDS 



909 ACRES 
(368 ha) 


FOR SALE PRIVATELY 
EITHER AS A WHOLE OR IN 18 LOTS 


FULL DETAILS OF BOTH PROPERTIES 
AVAILABLE ON REQUEST TO THE SOLE SELLING AGENTS 


4 RUTLAND SQUARE, EDINBURGH EH1 2AS 
TELEPHONE: 031-229 8800 




Jackson-Stops 
& Staff 







Yorkshire 
Property Portfolio 
for sale. 


(Knebworth) 


barratt 


Comprises residential plus 
2 shops, all freehold, 
income is excess of 
£40,000 per year. Serious 
enquiries only. • 

Telephone 0624-7 58 IS 

Business Hoars, 




WOOLLEY 
!j S WALLIS 


NEW FOREST 
(Nr Lymiogton) Delightful 
very wdl extended & 
modernised family home in 
Jqveiy secluded situation with 
hard tennis court, outbuildings 
& approx 3% acres. 4 beds, 2 
baths, 4 receps. 

.. Offers £300,000 

Ramsey (0794) 512129 


■ L *TH 




































Financial Times Saturday November 28 1987 


• Jill [• 



London and Conn 
23 Berkeley Square, Lo 


Estate Agents 
rmWl 01-6299050 



t ;i ^ 


17 EreJyn Gardens, 

Sooth Kensington, London SW7 

An elegant and spacious duplex apartment with 
private street entrance and direct access to 
communal gardens. Superbly decorated and 
furnished, it Is Ideal for entertaining and family living. 
■ 3 BEDROOMS: 2 BATHROOMS. GUEST VWX: 

SOUTH-FACING DRAWING ROOM 23** 19% 
KT1CHENIDININGROOM: LARGE PWVKTE TERRACE 
DIRECT GARDEN ACCESS. 

Victoo Security: CmtakBn IndependantOas H—Ung& Hot ftttnr 

LEASE: 70 YEARS PRICE: £440,000 

Mr* Soh Agents 


CLUTIONS 


W.A.ELLIS 


117-1 ly Fudbam Road. U»doaSU’36i(L IKIM^MhUljrfHSmiiir 
01-5801122 01-5*17654 

. . Fkx 589 8132 MktUWllMC talMW8M 


□Sturgis 


RUTLAND MEWS SOUTH. SWT 

A wide f ro nte d Mold in good cnndhiaa i* iMi ctanwnn w dqitict owaif.wimi 


? RkIk: KITCHEN: UTILITY AREA: CLOAKROOM: 2 BEDROOMS: 
BATHROOM EN SUITE: GAS OH: BURGLAR ALARM: 

□7MN 

FULHAM BOAIX SW3 

AweOmodenwnl aad dreamed reread Boar tot pretta* apaec avuMfe ea 

SStRANCE HALL: RECEPTION ROOM: 2 BEDROOMS: KITCHEN: 
BATHROOM CLOAKROOM: LIFT: CARETAKER: MDPTGASGftC 
I11M dTuMmi-B B 


K al gb ts hr Wy nfficcnptn SriardBy 10 an-1 pa. Td; 01-730 9291 


UNDOUBTEDLY 

LONDON’S 



01-4022333 01-7300622 


A development by OtODIMCECONSTRUCnGN 


a d MynM^ ndOBii«etei ia » te Mtea<jiteayBRKaaaac 


CROWN 


S jws 

! 



1 

L 

> rtw aucaming 



1 


PRE JANUARY "88 LAUNCH OFFER OF 
3 HOUSES IN REGENTS BARIC 
3/4 receptions, 4 bedrooms, 2/3 bathrooms and 
self contained flat Outstanding Quality and \fehie 
(to The Crown Estate Requirements). Sbowhouse at 
11 Albany Street (opposite The White House Hotel). 
PRICES FROM £487,500 
Open 6iis Stmday at 12.00 Noon. 

PRLDgmALT^r 



SUPERB OtApEll 
LISTED TOWNHOUSE 
IDEALLY SITUATED 
FOR THE CITY* 
WESFEND 

A period townhoone offering 
spacious accommodation * in 
good decorative order with 
views to Tower Bridge & Cky. 
Consisting of 4 dbl beds; <bl 
aspect recepL Rm 2TR12*; kit/ 
diner, bath; attractive walled 
patio gda. * Full gas CH 
throughout. 

Private Sale. Oflbs in the 
region of £189,500 for the 
freehold. Tel: 06832 - 6146 
wkendsOROl 681- 8162 
office. 


position woftfc 


0RUCE 

1 


I 

SHAW 

ASSOCIATES 

Ol-6/l 4050 

... . ■ . , | 



WEEKEND FT Xt 




The heigh 

SHOW APA 

Right in the heart of fashionable 
Chelsea. 355 Kings Road offers . 

a range of luxury apartments ' " 
all with secure parking ■ 7 ! ‘ 

1 bed from £135.000 

2 bed from £175,000 

3 bed from £200,000 : ; ~T 

Exciting to live in mm ~ Soi 

m 


F FASHION 

NOW OPEN 

i 

Show apartments 
™ open datty ilOam-OpoL 

T* Telephone the Sales Agcms, 
• K ‘ Farrar Stead &Gtyn on 

01-351 3551 


p:\KK.AR 

STEAD 


A. Trafalgar House Company 


FARRAR 

STEAD PRIME PROPERTIES FOR SALE 

<£G\M 




HOLLYWOOD ROAD SWlO 

Wall piiamM newly MH home daoor&tad to a 
wry Mgb atandard. S did beds, £ ansnlta hatha, 
reoep, dla rm, Vt kit. am hall, CH, folly carpeted, 
burglar alarm, potto. garage, 
m £315,000 

DRAYTON GARDENS SWlO 

Delightful flat on the pound floor of this praatt- 

glOQB wianefawi Monk 3 ho ri a fwtfi 4M mnp , 1 rffe/ 

break rm. GCH + HW, entryphone, lift, porter. 
XJBSOTB8 CC10.000 

Chelaea Ol-STS 8425 


CHELSEA 01-373 8425 


BISHOPS ROAD SW6 

A ttr ac tiv e Victorian te naood taw which baa 
harm mm lai nia wl to a wry Ugh standard. 4 
S i-o» dbl mil , — ■»hi itmi fitted kit, dk/Btffitf 
rm. —II-- ! GGB, patto/gdn. 
iffl cenuno 

BXNGMER AVENUE SW6 

Good dad fhmfiy hoaaa fat an dhat daoorattw 
order. 4 beds, a hatha (X meal to), draw rm. din cm. 
bit. S aepidka, GCH. cellar, paved gthx. 

rm obojooo 

Fulham 01-731 4381 


[FULHAM 01-731 4391 1 


BRUNSWICK GARDENS W8 

BeantlfaUy preaentod Victorian family hotnm, 
raftirMahcd S years ago. 3 bads. B hatha 
(i ananita). draw na, kit/dla rm.olk, udUty/ahwr 
rm, GCH, gdn. Sola Agents. 

FIB £795.000 

VICTORIA GROVE W8 

Pretty Bagency terraced house arranged on 4 
floors situated mar Gloucester Hoad. 4 beds, hath, 
draw rm. din rm, bit, <dk.OCg, gdn. Sola A gents. 

rm eaaojooo 

Kensington 01-803 1221 


KENSINGTON 01*603 1221 


EmOONROtD SW1Z 

h Ufldl tt aiMi^ im l— I faya^y httDN. 4 

a hatha. 8 baths, dbl recap. IdUbresk rm. 
MiHWaiitB.alhr.GCB. 

TIB CUMDO 

ZJBERTTHEVS SW12 

Interior rtaatumnl hanaa in pr* 1 ** ani damtop- 
raent- 8 IS tads. hath. WC. iffi racapa, idt. GCH. 
gda-Bance. 

TIB CMTJOO 

VICARAGE CRESCENT SWll 

im floor Dal Bod. both, recap, 
ktt/brmk rm. OCH- 

US 07.000 

Claphun 02-283 sill 


CLAPHAM 01-223 8111 




19 Reddiffe Gardens • London- SWlO 




7^" 


gar 





E llis & Co are delighted to offer for sole seven 
skilfully designed apartments carved from 
this attractive period house. Reddiffe Gardens Is 
well located for the shopping and transport 
facilities of both Stoane Street and Knightsbridge. 

Benefits Include luxury fully tiled bath- 
rooms, quality fitted kitchens and wardrobes to 
master bedrooms, terraces, garden access or a 
balcony to some flats. 

Prices from £77.500 to £145,000. R>r foil col- 
our brochure contact Eltfs & CO on 01-736 0069 or 
2250625. 

Open Viewing: Son. 6 Dec 2-5 p.m. 


Ellis 

8£? 



Lawrence Gibson 

} S T A T L \ C I NTS 


R rawicirf faJ HoUngt pic are pleaded to o&t 
there five remaining 2 aim J bedroom apartment* 
and two mewa hottam Cot aole. 

and is offered formic on a new 96 year leaae. 


Moat uwnwun anJ both mm homca - 

are folly cunaincd 


DOUGLAS* GORDON 

SAVILLS 

0I-7JO84H 

01-7100822 


EATHBONE STREET. W1 


. LAUNCH 2STB NOVEMBER 1987 

Outstanding newdevelppment in thisqirietcaiierof 
the flfest End, just off Charlotte Street, 
imaginatively designed and finished wifliinfinite 
care and ineticuioiisattentjon to detail 


125 years 
£130,000 
£170,000 
£250,000 


LEASE 

1 bed flats from 

2 bed flats from 

2 bed penthouses 

SHOW FLAT OPEN 
2pm- 5pm WEEKENDS 
12pm-6pm WEEKDAYS 


1 01-373 5075 

H2 RU4UI UOUriSN AMO WR 
wmaiwtWII >waaw; 



CPK 


m 








INTERNATIONAL REALTY 



lT.l.U>EK>Nh 01-T >6 VVO- 


Carpets tfVDuahouL 8270000 tor 00 year 


caw wi 4th floor 1 bid flat (flun Mngls 
ta tor £13S£00 


Merjvale Moore Resuxnjial Limited 

2a Pond Place, London 5W3 6QJ Telephone: 01-5815791 


Well furnished properties 


SJFA p in good residential a re as 


CXANLSr GDNS 5W7 
Ctannwg 3rd floor UaL 
Double bedroom, 
buhroom, reception 
room. Pf kheben, Bfi, . 
roofienace. AH new aad 
highly reco mmea ded. 

£230 pAv 


L£XHAM GDNS W8 
Superb Urn immaculately 
furnished. 2 double 
bedroom, 2 bathrooms, 
reception room 
ovenw*iM> gardens. Of 
fcheten, Sft, porter. 


BTJKUNC3ZAM SO SW6 
Unhmridied tanfly 

tome. 4 bedrooms, 3 

baihTOotai, receptiorv' 
disiitt area; khenen, 
esttefftta security, car 
parting. 

JDCSpNr . • I 


01-370 4329 01-603 9291 01-736 4851 


A. 

EIGHT 


GROSVENOR 


SQUARE 


The lease is for sale 

for this magnificent 


m one of 
most famous squares. 
Comprising 10,000 
square feet over six 
floors, it would be 
ideal as a head office of 
a major institution, an 
embassy or a private 
residence. 


International Realty, 
■waaMwarerei 34-35 New Bond Street, 

Wnithnilll London W1A2AA. 
w ~n5SS Tdephone: 01-493 8080 
7 Cunon Swat London W1V7R. Sotheby’s International 

01-4935566 Rmhy.NewYoriL 

■L^TVtS Tebhwe 212-606 4100. 



Hyde Park Estate 

J LONDON ■ W2 
In the market for the first time. 

A limited choice of 1 & 2 Bedroom flats . 
for sale in modem blocks on 99 year leases. 
Porterage: Lifts. Private Gardens. 
Parking Spaces to rent. 

Prices £140,000 - £265,000. 

PRLDBSITIAL13/ 

Property Services • P 

40 Connaught StB« Hyde ftric London W22AB Fax: 724 4432 
012625060 
































London Property 


LONDON 


iMj 


DOCKLANDS 


Award Winning Design 

View this weekend 


Beautifitl 2 bedroom 2 storey 
‘Swift* apartments with exceptional 
specifications and superb views 
over the Clipper Docks. 


An unrivalled water sports 
location adjacent to the DLR 
station at Mudchute Farm just 
12 minutes from the city. 


£125,000 

... Be in by Christmas and save up to £15,000 ... 

SHOW HOME AND SALES 
OFFICE OPEN EVERY DAY 
10-5 weekdays 2-5 weekends 

01-9874255 mqlgolm 




28 &Rutky 

LONDON DOCKLANDS 

01-480 6848 


East Ferry Road 
Isle of Dogs London E14 


MQLOOLM 

IMb>llwlii>s 

A member of the 
Bel Ku inch Group 

01-987 4255 


-1 




> jr 


\~x 


■XZr’ 




POINT 


5 bedroom 


river front 


houses 


On the sooth-easteni river- 
edge of tte Isle of Dogs'exdDDg 
and vibrant new community, 


Costain Homes are creating 
Compass Pont a development, outstanding m both 
quality and design, featuring distinctive, dutch style 
high gabled elevations. Sales office open 
seven days a week 30 am- 5 pm. Phone us 
on 01 538 3600 Prices from £250,000 

Costain 
Homes 

Costata Homes (Easteni) Limed 

20 Nafls Lane, Bishop's Stortfixd, Hertfordshire CM233BH 


R 

r 

W 

T 

tQ 

j. 

s 

rf 



. 4 : 


V.f 






T-T -f- t 




c. n\S<- 

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42 CRAVEN HILL GARDENS. W2 


it 




1 il rl i t ri»pUi < . i n B l iTi i I' , 1 1 jrM 



THE DOWNS 

WIMBLEDON COMMON 

ON HIGH GROUND WITH FAR REACHING VIEWS 


E1K3I-1..9 g.MJ y i.1 3aiL*J.; 

«1 -A & i jfltSXTutflsfc (WtH I'Mi 


BY BERKELEY CENTRA LTD. 

EACH OFFERING - 4 BEDROOMS. 2 BATHROOMS. 
2 RECEPTION ROOMS, CLOAKROOM, LUXURY 
KITCHEN, GARAGE AND PRIVATE GARDEN. 




ONLY EIGHT HOUSES REMAINING 
POSSESSION MAY 1988 
FOR FURTHER PARTICULARS APPLY 
THE JOINT SOLE AGENTS 




yLESFORD 


81 High Street 

Wl m btedon Common SW195BG 
Tel: 01 -9460026 


; Hawes Co 


Wimhted on Common S W19MJX 
^HTd: 01-946 


NEWLY REFURBISHED HOUSE WITH GARAGE 
AND ROOF TERRACE 

A munificent freehold house designed and finished to a high standard, 
don to Regents PWk. 

ACCOMJ Beds, 22T3W Reap, Lux Kit, 2 Bathe, Sep Cft 

AMENmE&Ganae, Roof Terr, Gu CH, Eat phone. Patio 
£335,000 

Fall colour brochure available upon request. 

JOINT SOLE AGENTS 


Stsdcdy A Kent 
01-267 2053 


MiasiDsat 
01-723 3675 
bpen 7 days a wed: 


CLARENDON HOUSE 
STRATHEARN PLACE W2 

Two magnificent neMjr aodernird Bata to Ws prime poaitta fa period bufldtog 

just off Hyde Path Square. 

4 Bedroom: 25* Reception: Kitchen: 2 Ltm Bathroom: Sfcwr ntu 
MtKXCMSjOOO 

3 BedrooaK DEL RoGCpdoK Kitcbea: 2 Lax Bathrooms: 

rice mm 

• 99 year fanes "IndCH. 

v P nie cgg 1 Eft -Caretaker 

Joint Sok Agents 

Prudential Property MaaniUms 

Service* 01-262 5060 01-723 3675 


SndSBtCKEPK.CSJIGWELL 
A mdy im pww ire Tudor Style midenee 
(h ran ooTV) e x emplified by ia dm* 
berieg projecting (ms and dormer 
window* with tended Hgfe*. Very high I 

s™%Sf J&iSS Rentals 

■ad cftsagfugram, Cental vae. system, 1 


Price on AppBcada 
TtLOinOW? 




Thin outstanding development 
of two and three bedroom 
apartroen ta and maiaonettaa ta 
quietly located in this popular 
tree lined avenue in the heart 
of fashionable Bayawatec 
Designed with the etnphania on 
modem day living with bright, 
spacious noma and with 
fixtures and fittings of an 
exceptional quality. 

Now complete, it ia 
recommended that those 
superior apartments are 
viewed without delay. 

Prices from 
£175,000- £236,000 
118 Kensington Church Street. 

London, W8 4BH. 


31 Sussex Place, London W2 
Facsimile: 01-724 6234 










ll'l 01-221 2' 


Unique Waterside Company Lets 


Ivory House. StKaUwrin# by the Tower 

A f e wgatoe apoclal apartments are aaeflahto in 
this historic Island warehouse. 

1 and a bedroom apartments, spacious rooms, bmloonies, 
available on aa-yeariaaocs with car parking. 


IVORY 



HOUSE 


Oo nta efc 
Keith Sadler 
or Jenny Hbdde: 
oa03r488-840O 



ENORMOUS FAMILY/ 


APARTMENT 



Umnoderaised 
BdgnriaFredwld 
S beds, 5 baths, 2 
rcceps^ Irit/b’&st, 40 ft 
Sooth fitting gda. 


0836 - 254806 




Country Property 


KENT-EASTRY 

Sandwich 3 miles. Cantedjrory 11 miles A superb 
period house, on the edge of the village, with classical 
Georgian front parts said to date back 1000 years and 
to be on the site of the King of Kent's palace and at 
one time ocoqned by Thomas a BeckeL 
4 reception rooms, kitchen/breakfast room, 5 
bedrooms, 3 bathrooms, 2 attic rooms. Central 
Heating. Landscaped gardens 
Abort 1% acres 

Cartel buy Office: 2 St Ma rg ar et** Street Tel 9227 ) 
451123 (M8BR29M) 

SUFFOLK NEAR WOODBBIDGE. 

A charming Grade 11 listed period cottage enjoying 
an attractive location- close to the Church in the 


Ipswich Office: 11 Mnseam Street Tel (6473) 214841 


^ SUN LIFE 

uni services 

MORTGAGES and RE-MORTGAGES 

9.75% pa (TYpuAPJi. io2%) variable 
Minimum loan £50,000 

These mortgages are designed fin- the professional and business* 
person. Co mp any technic inu and executive who is probably earn- 
ing £20,000 per annum or more. They are provided with our 
Co mp rehensive Saving* Plan for Mortgage* winch GUARAN- 
TEES your montage wifi be repaid at the agreed data. 

Tte Sm Life Om^ te om *r ite teigm Snaefad kafinukai k dm IMiad Kwfem 
AoMed ta Ilia R bm «oonteaaim*x*eed^£M» uBm 

Heami rf O rtmr OOO 06647 uOxmb wmW mwd orcotmkt* dr jam* oarf jnrf 


• mm. . ‘JW Ffimtf. Aaddnas 

SIM UFE UMT SERVICES 

Htnorn HMot, 73/74 Mgh HoBrara. Loafoi WC1V ODD 



Overseas Property 



ftoc(M9)77»-973» 


Country Property 


CHARTERED 

SURVEYORS 


ESTATE AGENTS 


no. mi Co 
12BOO aq ft 


67 HIGH STREET ASHFORD KENT TN24 8SG 
TELEPHONE: ASHF ORD (0 2331 43661 

ELHAM, KENT 
O nte fa m y 9 note*. FoPatone " 

6 mites. A fine Ed w n fe a 
manor hone in glorioa* download 
position Hi mile* from vfflege. 

A private t endance with an 

cata M ished ooonnetcad me. • tr • 

SrntaWe for a variety of flOHUEX * ’ | )%' If 

p mgoaea . 4 rec eption m oon, 

3 offioea, Mlchm. utility room, 

8 hed r o nm t, 3 bathrooms and 

1800 iq ft wor kro om. OoiNifldmp 
ti i nL * , g paddocks tottHmg 
iboat Ham 

£4004 NM 


mm. 



Jackson-Stops 
srr. & Staff 


Freehold Woodland for sale 
near Hereford 

Approximately 60 acres cf wdlstodced, samnnanure and mature 
broadkaved woodland cootahmig some caoeDetn oak and ash. 
Paitsculaas from: Forestry Department, 

T a cki rota-Stops & StafL 20 Bridge Street, 

Nndmnpton NN1 1NR. Tdephoiie:(0604)3299L 





3 Mfeases drive Mate Lne SEstko, • 



Unusual Opportunity 

farnutk kmty m Cfaattnt St Pom a 17tb 
CentinYUstdlrovalhycninenkn. 

original beams. 3 imptions. 4 bedrooms. 
3Vihjtb*. Pkn rimming enttage fe^nandi 
ofl xvt, aveuteftfl D^utmoii mail. 


ONE OF THE MOST 


BUILDING PLOTS IN 


£08,990(0249713961 


h 

HoHday Homes fur Sale. 
Full Management. C G. 
Rollover Relief. 
Capital Grant 
Brochure 0369 6205. 




i;<!g: »llgfl : :o 

'Mthli 





COSTA DEL SOL 
and 

COSTA BLANCA 




DAVID SILVERMAN iOVERSEASI LTD 
061-969 8188 or 061-973 2250 

13 u a . Mj-.lcftes.t*: V .3 3 3HP 


VALBONNE 
(near Cannes) 

FRANCE Superb new Proven- 
cals Home on 1 1/2 Acres landA 
Bedrooms, 3 Bedroom* Care- 
taket'’* Flat, Laiye Living Room, 
Private Swimmiiig Pool and 
Temds Court 2.9.M3lkin Francs 
For thi* or other quality Real 
Estate cafl Keith Meredith on 
93 38 62 62 (Fiance) 


SUPER 

CANNES 

S i d aedSd view Medhe toii e au toari. 
ota home in “LA CAUFORNIE", 
5 rooms, 2^00 aqju. already act in 
gudm, aottmottc watering system, 
matufteent swimmini-pool, pool- 
born e , esmstert stadia Etadac 
6J000,000 finuics 

FRANCE PROMOTION 

. 9338 62 62 


CANNES LE 


iZSZESg 



Select residential development. 
Eleven superb quality apartments, 
n a immn l r Mtditcrauma views. 
Prices £5000U10(Una 

HamStan Laws 
(06286)68456. 


OCEAN ESTATES 
MARBELLA 

Widest seiadion of COSTA DEL 
SOL quafity propartin 01 ALL price 
ieuekk CotouresWogue. 

Totopfeone (0223)92136 
24 hoara (0223) 60207 


1 


ST1RDPEZ 

mrc aw mosiar acusnue 
mar cum wla cowmuenon 

Eadaiw eoat Ukn anter wM panMfer af 
am pari. P mr tiot c rian t ew i <w 

Bar St Trapaz. 

J Ciwam al i w ha B ln g pe ri l i iri imb u ei u . 
CoS coane aw rtju 
2 ta 4 bMnwMB. 

. N*M* from: 

£80.000 lo £I90JX». 

Ow i li|W hotel JASMIN wftMn Hm 
dw ihBni M l offer* mnnumMui m* nnal 

xnfetsUferaiamm. 

UP to 70% unttwi at 55% teureii rate 
CoetKt the dteWopen Aea for bradam 
sofei — la rows ewwanr 
W33W Cr tm ma 
Tok {S3 949 43 33 OUT 

tube an am teUMWtn 


SKssar* 

Oa UK Rock afean the femoas Adndnri 
Netan ia 1794 Ion his eye. a decade m> 
a hum vffla mb Mb. with * tremea- 
doui vtew of the medte. Cm mountains 
and the citadeL TV offer atao bcMca a 
nntti oe wn pl m at the bcadi (poo. me. 
mnmeFrA. 3au»Or-^a) nd.M 
of I4J0M aq mem of lud. 


HLA03I-30JIJ7JI 
wtefec 00 31 - 3052.3039 


NORMANDY 


We specialise in cottages and 
boros for renovation » Nor- 
mandy. Prices can start from 
CMKXK For initial brochure write 
tot 


Troa Nanari pie, 
JJ'XHcam. 

M Hnfa Stroat, 


Or Tel: (0747)2141. 


CANNES 

FRANCE 

Owning 3 bedroomed bouse with 
lwge reception, weft equipped 
kitchen, garage, swimming pool 
and dear view of the aea and Cap 
O* A ntibe s. For thi* or other quality 

red e a t a i c 

Call Keith Meredith <m 

93 38 62 62 
Fiance P romo ti on. 






























































WEEKEND FT HI1 


DIVERSIONS 


Salty Watts looks at legislation planned to protect a unique British heritage 


The land we all have in common 


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The Scotney Castle Landscape before the hurricane 

Stop-gap measures 


Arthur; Hellyer views 
the hurricane damage to 
Scotney Castle and the 
restoration planned 


THE SADDEST sight I have seen 
since the October hurricane is 
the landscape garden of Scotney 
Castle at Lamberhurst, Kent. 
This was created ISO years ago 
by Edward Hussey who was then 
living in a 17th century villa 
beside the tower of a 14th cen- 
tury castle on amoated island la 
the valley of the River BewL 

It was a lovely spot but damp 
and uncomfortable so he deckled 
to build himself a fine new 
house on the crest of the valley 
and then partly dismantle the 
old villa to use it and (he tower 
as ruins in a carefully composed 
landscape. 

All went according to plan, 
planting was carefully consid- 
ered and the result was the kind 
of idealised romantic landscape 
that a painter might have con- 
ceived. The quarry near the top 
of the valley from which stone 
for the new house was obtained 
became a spectacular rode gar- 
den and a stone balustrade^ bel- 
vedere or look-out was built 
immediately above it, from 
which the garden in the valley 
below coulcfbe enjoyed. 

Though the ruins were the 
focal point of this connived 
landscape the planting was of 
great importance in providing it 
with a deliberately dramatised 
setting. Most of It was with 
rounded native trees and, at a 
lower leveJLjdmibs:. continued 
these generally billowy outlines. 

strike a dteKmard natK^to^jhf 
and . loft there were several 
gigantic dark green columns of 
incense cedar and, placed cen- 
trally beyond the ruin and a lit- 
tle way up the far side of the 
valley, there was a single Leba- 
non cedar which produced its 
characteristic wide-spreading, 
fiat-topped shape- 

These trees, with the ruins and 
the moat, gave this marvellous 
garden its special picturesque 


quality, making it, in the eyes of 
many, the most beautiful 
man-made landscape of its type 
and period. The hurricane blew 
them all down and so removed 
major strokes from Edward Hus- 
sey's composition. 

Scotney is a large estate full of 
fine trees, thousands of which 
were also laid fiat by the hurri- 
cane but enough remain to pro- 
vide the essential English envi- 
ronment in which Hussey 
worked. He also used some other 
foreign trees which played a sub- 
sidiary role and some .of these 
have also vanished but none will 
be missed so much as the back- 
drop Lebanon cedar- and the 
flanring inoenae cedars. 

Yet In all this destruction there 
is a survivor which deserves 
comment and provides a small 
degree of rejoicing For much of 
this century Scotney Castle was 
the home of Christopher Hussey, 





Gardening 


weU known as the expert on the 
great houses of Britain, who 
wrote with such understanding 
abou$,fihejn in Country Life. 

'When he retired in the early 
190 Os Mg oa fifca gi e g.wereat flat 

titoF could give 
- him -as' ah appropriate passing 
gift Then they remembered the 
cedar of Lebanon which played 
such a key role in his garden and 
they decided to give him a 
replacement tree in case age or 
accident destroyed the original. 
The suggestion was that it might 
be planted a little beyond Ship 
existing tree, out of right so long 
as the original survived but in a 

good position to serve a stmiiar 
landscape rote if the original tree 


disappeared. 

When I saw the 'de s truc t ion 
that had occurred I Immediately 
inquired after that stand-in and 
was delighted to hear that it was | 
stfll there and doing well. It wifi 
be a considerable tune before it 
plays the full role of its predeces- 
sor but at least It must be a 
quarter, of a century along the 
way. What a pity we did not also 
give Christopher two or three 
incense ceders fop a similar pur- 
pose. For some reason it never 
occurred to us that they too were 
vulnerable. 

Scotney Castle now belongB to 
the National Trust and so Jt wfll 
be the very experienced exports 
of that organisation who decide 
what must be done I expect they 
will cake no risks and will set 
about replanting it as it was 
even though that uflll mean 
waiting at least two generations 
to get a comparable effect. 

In their position I would 
almost certainly do the same but 
1 have amused myself by consid- 
ering what I would do were it 
my property and 1 had no 
responsibility to anyone else. I 
concluded that I would replant 
inoenae cedes but that not far 
away from them I would also 
pJwUja^xwresponding number of , 

this might produce hoots of 
derision from purists who see : 
Leyland cypress as a wholly vul- 
gar man-made tree, not just an 
ordinary hybrid but a hybrid; 
between two different general 
which seems to make U even 
more unnatural. My reply would 
be that Scotney Castle has « 
man-made landscape so ft Is not, 
out of character to use 
man-made plants if they produce 
the right effect. Leyland cypress 
grows at least twice as last as 
Inoemw ceder and 4n the Scotney 
environment would, eerily add 4| 
'ft to ita hefght every year. In' i& 
years the -tree* wouJd-W making} 
a significant contribution to the 
picture and In 20 years they 
could be felled, leaving the 
incense ceders to take over. 

Leyland cypress has the 
required dark green colour and is 
almost the right shape though a 
little too broad at the base and 
too tapering at the top, a slender 
cone rather than a column. That 
» why it would not do for per- 
manence: but it would make a 

very useful stopgap. 


THE! POOP news Is that if legislation 
goes ahead as expected, we shall have 
right of access to our unique heritage of 
one and a half ipfllion acres of common 
land. 

At p res e nt , only about one fifth of 
commons are legally open to the public. 
The somewhat surprising news is that 
after two years of hard d is cussion and 
bargaining 21 diverse organ isatio ns on 
the Common Land Forum, representing 
farmers and landowners, conservation 
and recreation interests and local gov- 
ernment, have reached agreement. 

The forum was set up by the Country- 
ride Commission, the Government’s stat- 
utory advisors, and its recommendations 
formed a report on which the new Com- 
mons Act wOl he based Legislation is 
expected to be announced in the 
nextQueen’s Speech. 

More sobering is the news that, follow- 
ing the Doe’s consultative paper, a num- 
ber of organisations, though agreeing In 
principle with the proposals, have sal- 
ons reservations about particular areas 
of activity; for example, grouse shooting, 
the protection of rare birds and manage- 
ment of res e rves, and the future of enor- 
mous grating commons. 

There are no commons in' Scotland. 
Only England and Wales have this 
remarkable historic legacy, ranging from 
village greens to vast upland pastures. 
Ten per cent axe in national parks. Mao 
included are the Chfltems, the Norfolk 
coast, Surrey's heathlands, Epping, Ash- 
down and the New Forest, Oxford's huge 
Port Meadow and more betides. 

Commons are owned by individuals, 
companies or councils, but by long tradi- 
tion others - commoners - have rights to 
graze, collect wood for fuel or repair and 
bracken for animal bedding, cut peat, 
fish and take such products as gravel 
and minerals. Wildlife sanctuaries, 
archaeological features and variety of 
landscape are commons characteristics. . 

Common land Is now at a critical stage 
in Its history, which, makes action 
imperative This is partly the result of 
changing uses of land, especially agricul- 
tural land. The Association of County 
Councils suggests that the amenity value 
of a grazing common is likely to rise if 
grazing herds diminish and leisure 
increases. 

Again, some commons are suffering 
from neglect and a lot of land fs in 
limbo. Most important, though, com- 
mons are Increasingly threatened by. 
development, afforestation and intensive 
agriculture - and high prices tempt own- 
ers to salt Some have already been sold 
and de-regM#red, others are likely to be 
lost, a remit of the 1805 Commons Reg- 
istration Act, which contained loopholes 
making it possible to 'manipulate them 
0 ft the register.' according to the Open 
Spaces Society- OSS is eager to see the 
new law introduced, fearing that time is 
short. 

The forum's report, Common Cause, 


contains legislative proposals covering 
three main benefits. The first is protec- 
tion against encroachment, with land on 
which common rights have been given 
up becoming "stature ory common land' 
and remaining on the register. 
Unclaimed commons (ie with no known 
owner)' would be vested in the local 
authority or the national park authority. 

Second is access for all, on foot for 
quiet enjoyment (with informal horse 
tiding where suitable) but with neces- 
sary restrictions to protect young trees, 
lambs and sites of historical or scientific 
interest, notably nature conservation. 
Village greens, probably the best-known 
common land, would continue to be 
used for sports and pastimes. 

Third is the introduction of practical, 
on-the-ground management by owners, 
commoners and local authorities, who 
would have five years to form manage- 
ment associations and develop workable 
schemes. 

The report outlines schemes for both 
grazing and amenity commons. Each 
would aim to balance public access with 
agricultural rights, care of wildlife and 
other Interests. .Good management will 
ensure that commons are no longer used 
as rubbish dumps in urban fringes, 
where they are seen as wasteland. They 
will not be' over-grazed, nor allowed to 
become unpenetrable from under-graz- 
ing and overgrowth. - - 

The Nature Conservancy Council 
would like scrub to be cut back- on' 
sparse southern, commons and grazing 
re-introduced, with fencing on roadways 
by agreement with the DoE and manage- 
ment associations. “A fair and reason- 


able package,” says the National 
Farmers' Union, which represents com- 
moners, of the proposals. They welcome 
the prospect of 'orderly, well-planned 
management to bring under control 

so promising, But there are gen- 
uine anxieties. At least two groups, the 
Country Landowners’ Association and 
the Royal Society for the Protection of 
Birds, fear their members may be 
'swamped' on management associa- 
tions. 

There must be a balanced member- 
ship of commoners and owners,” toe 
CLA stresses. They are concerned about 
management of vast acres of unfenced 
tracts of grazing land that are crucial to 
farms, and toe effects upon them of 
public access. Will it inhibit grazing? 
How many wardens will be needed? Will 
sheep rustling occur? 

Wildlife protection is another sensitive 
Issue and the Royal Society for Nature 
Conservation advocates permanent or 
temporary restiction of access lit certain 
cases, such as to prevent trampling of 
flowering orchids or disturbance to rare 
breeding birds. 

Similarly the RSPB, which Is anxious 
about losing control of their own 
reserves on commons, fear that open 
access would make it difficult for them 
to protect care species such as toe colo- 
- nies of terns on . toe north Norfolk coast. 
Disturbing these birds while nesting is 
an offence. Again, some northern com- 
mons, including Morecambe Bay, also 
contain rare birds - curlews, for instance 
- that should not be disturbed. 

A third obstacle involves grouse breed- 


ing and shooting. The Moorland Associa- 
tion represents 600,000 acres of heather 
moors in Cornwall, Devon, Wales and up 
to Hadrian’s Wall In the north. Of these, 
roughly two-thirds are common land, 
criss-crossed with rights of way. The 
moors are intensively managed for 
sheep grazing, grouse rearing and breed- 
ing rare birds - golden plovers, curlews, 
wild-fowL 

Members support the forum’s aims for 
better access and management and 
think that footpaths, at present covering 
about 10 miles, could be extended. But 
thejf are sure that open access is imprac- 

Several organisations consider that toe 
MA has a sound economic case. Grouse 
provide seasonal employment and 
attract enthusiasts paying up to £500 to 
join a shooting team. Much of this 
reverts to the moors for upkeep and 
conservation. 

In common with other concerned 
groups, the MA is talking with the DoE 
and the Countryside Commission to find 
solutions. The poet Oliver Goldsmith has 
celebrated the earlier significance of 
common land: 'A time there was ’ere 
England's griefs began/When every rood 
of ground maintained its man.** 

in 1953 a Royal Commission described 
commons ss 'this last reserve of uncom- 
mitted land in England and Wales.” 
Most people will hope that as much as 
possible of our commons will be enjoyed 
and cared for by everybody. 

• Countryside Commission, John 
Dower House, Crescent Place, Chelten- 
ham, Glos, GL50 3RA. Open Spaces Soci- 
ety, 25a Bell Street, Henley-on-Thames, 
Oxon. RG9 2BA. 



4$ ; f y-4 . ■ V* . - * 


. :*<V , ■ ... - * -V. . 


Sheep may a&fely graze^t traditional tight on < 


• .. .k A] A' 


m land 


up Above neth street, they 
call it The Streak and it never 
ends. For four yeara, Columbia’s 
best athletes have spent their 
autumn Saturdays eating the dirt 
of American football fields all 
over the eastern US. Since Octo- 
ber 15, 1983, Columbia Univer- 
sity has not won a varsity fpofc- 
bafi game, not at Baker Field on 
the northern tip of Manhattan, 
not at Yale or Princeton, not 


. James Buchauinvcstigates The Streak 

You lose some and... 


Complete fabrications 


ON NOVEMBER evenings all 
good gardeners are supposed to 


put away their leaf-rakes and 
retire indoors to read about yet 
more gardening and lay plans for 
the coming year. They settle 
down to a good gardening book 
and are assumed to draw their 
curtains on the darkening world. 
It is hot difficult to find the 
book. The bother is not the book: 
it is the euxtslns. 

If you have an eye for flowers, 
you can only wonder what mod- 
ern fabric-designers think they 
are doing. This year, 1 have been 
trying to choose flowery curtains 
for the room in which I usually 
write these articles and 1 have 
found it. much more difficult 
than choosing a new tree. 

I had always thought of 
English taste as steering an inde- 
pendent course away from Ger- 
man functionalism and the 
Americans’ beastly frills and 
cafe-blinds in matters of taste. 
Transatlantic meant over the 

top. 

As a gardener, all I want is a 
fabric whose flowers look like 
flowers and whose pattern Is not 
a cringing revival of the 1$50'? 
chintzes with which I grew up. I 
began by asking our major Lon- 
don shops. Their well-spoken 
shop-girls behaved as if I had 
surfaced from another planet. 
Why could I not shut up and buy 
Laura Aahleyls idea or a blue- 
flowered carnation, a curious 
posy from ColoraQ or one of the 
shop’s own designer fabrics? 

. No fabrics are more famous 
than Colefax and Fowler, but I 
was nearly panicked into 
choosing some lurid parole fox- 
gloves or a splodge catted (he 
Brook Q collection whose plants 
had blue or hronze leaves and 
whose flowers looked like pink 
cubes. After a long search, we 
did come up with some passable 
bindweed on a brown back- 
ground, but 1 really cannot face 
seeing the old enemy all over the 
windows too. In Osborne & Lit- 
tle, it was felt that the Rosa 
Mundi pattern would be just the 
ticket- However, half the flowers 
look like Canadians with prick- 
les; no Rosa Mundi was ever yel- 
low; } would have fretted for 
hourt at the sighted these botapr 
kal oddities. 

Do fabric-buyers not know, 0? 


care, what flowers look like? If 
you know anything about roses, 
you cannot live happily with a 
Baker chintz of blue-flowered 
Impossibilities. Nothing else is 
redesigned so ignorantly. You 
probably know those cosy old 
chintzes with sporting scenes, 
which somebody is ho doubt 
about to revive as a "back to the 
Fifties" gesture. Who would- 
think of showing toe horses In 
blue, the foxes in yellow and the 
trees In pale mauve? 



eta against a white background. 
By now, I had been recom- 
mended to Dido Farrell Designs, 
140 Battersea Park Road, London 
SWli: at last, somebody saw the 
point of my request and had the 
range and taste to deal with ft. 
The violets have been enjoying a 
fashionable second life. Ramm ft 
Crocker of High Wycombe has 
revived the pattern, but some-’ 
thing has gone wrong with my 
memory or toe reproduction, as 
the bunches now come in jnst 
the wrong shade of reddfah-pur- 
pte, the violets have lost todr 
definitions and the result is as 
maddening as a periwinkle with 


only two petals, 
violas were 


No shop wn Bring to solve my 
problem, so I tried a few inferior 
designers. Half-heartedly, they 
came up with two suggestion^ 
One recommended ■ a pattern 
called Flower Ribbons from 
Monkwells. The ribbons tri- 
oraphed over the flpwere, wfcoae 
roses had black centres arid 
brown surrounds and kept 
uneasy company with some 
aborted anemones. Another Idea 
was the Dovedale Country Gar- 
den Collection, designed by an 
expert in dried flowers. The. pat- 
tern-types are camellias, but the 
leaves are blue-green, the flow- 
ms to have tubular centres 
and s bd coloured com bi natio n of 
rust-red and brown. Not even a 
Awrj wn^Ha looks so d e cade n t. 

At this point, I remembered 
the violets. Once, beneath a 
Cambridgeshire bedspread, 1 had 
slept contentedly be ne a t h wd)- 
iSfetod buKS of Vida odor- 


violas were out, but what 
about tulips? Thorpe ft May of 
35-7 Parkgate Road, London 
SW11, is a small firm with a 
better idea of what a parrot tulip 
looks film, but I still wished that 
the flowers had not been hang- 
ing their heads when the 
designer imagined them. Dido 
Farrell recommended a good 
anemone, iris and passionflower 
on patterns from toe Design 
Archives, 13-14 Margaret Strut, 
London W1, a recent venture 
which is putting careful research 
into old patterns. Their Garden 
Party and Appaifdhnata were too 
p osab l e , and 1 might have com- 
promised with clover and a yel- 
low lilac if I had not found the 
answer on a roll at the bottom of 
the pile. 

Called Botanical Garden, it Is 
true to a gardener’s ideas. Its pat- 
tern does Justice to a pink Col- 
diicum and some SDOtted - tJlft i m 
spedosura. You coumnrt quarrel 
with its flowers from a Judas 
Tree or he rendering of Primus 

tomentesoa. The makers are 
Rich ft Smith and the juice is. 
£17-50 a metre, The designs, yet 

o^rvwdom^ttoey WDM^^to. 
early botanical prints. They do 
look like flowers which you and- 
1 love and try to grow. 

Triumphant at last, I was 
thinking of writing an article] 
called the Englishman's Cur-j 
tains. The Idea, I can reassure 
yon, vanished when we- started) 
to unroll' the pile. Trim to an) 

Englishman's eccentricities, tori 

pattern was stamped quite] 
plainly 'Mode In America- 1 

lhWn LoH FOX 


anywhere. 

New York City chews up losers 
and these young men are some- 
times so down that it shows. 
"When you work out in toe 
gym,* one player said In the 
summer, "sometimes you don’t 
want to tell people you play foot- 
ball when they ask questions. 
You keep quiet" The cheerlead- 
ers look frazzled. The team has 
had three coaches in three yearn. 1 

As The Streak goes on, way- 
past Northwestern’s 34-game 
record. Columbia itself has lost 
its poise, for this Is one of the 
world's great universities, a 
haven tor independent research 
and liberal opinion. But it is stfll 
a university in America and in 
America football matters. It mat- 
ters, too, when talented appli- 
cants or hkriy benefactors are 
reeding in the Washington Post: 
“Cotomm* te to college football 


IN MY EARLY fanning days 1 
regarded myself os a member of 
toe oppre ss ed classes. I was a- 
tenant and as such was not 
allowed the right to kill game, 
pheasants or partridges on the 
I land I rented. 1 could; to protect 
my crops, shoot or trap rabbits 
or hares but the game was 
reserved for die landlord and his 
friends. 

It was not that my landlords 
were particularly possessive but 
it frustrated me to see toe birds 


what salmonella is to frozen din- 
ners-" 

Last Saturday, as a 41st 
Straight loss brought the college 
football season to a merciful 
dose, the campus was humming 
over a store in The New York 
Times that Columbia has already 
cut comers to compete with the 
seven other lyy League schools. 

Since 1985, the story revealed, 
Columbia has been allowed to 
drop its high academic entrance 


IO 



Lehecka, the Columbia dean of 
students. "It’s not in toe League’s 
Interest to have one school lag so 
Jar behind." 

However, Mr Mark Philinpson, 
a third-year student, tola The. 
Times. The move is stupid and 
it shakes me. We should leave 
that to Oklahoma. We’re not a 
football factory. 

Columbia is certainly not a 
football factory. It has been Ide- 


DESPATCHES] 

v • New York • 


Ing off and on for 40 years. Ath- 
letes have, rarely felt at. home 
and were downright unpopular 
in the radical 1930s and 1960s. In 
the US, competition for student 
athletes is intense, but Columbia 
awards no sports scholarships 
and its acad em ic standards leave 
athletes no place in the curricu- 
lum to hide. 

New York Is expensive, sum- 
mer jobs can be hud to And and 
the sleaze and peril of Morning- 
side Heights con deter even 


twenty-stone, six-foot-eight foot- 
ballers. George Abney, a line- 
man, chose Columbia over Cor- 
nell only after his mother flew 
up from Florida to check the 
campus for safety. 

So why does Columbia punish 
itself every autumn? Why not 
drop fust-division football alto- 
gether? Distinguished schools 
such as Georgetown and the Uni- 
versity of Chicago rattle about 
quite happily in the base men t of 
college football. 

But Columbia does not want to 
give up. While the college has 
raised no ten than $522m from 
Us old students in the last five 
years, Columbia admits that a 
strong football team might have 
made the task easier. 

Mr Lawrence Wien, a New 
York real estate developer who 
helped pay for a new stadium at 
Baker Field, told the Columbia 
alumni magazine: ‘1 don’t think 
Columbia can be a full-fledged 
member of the Ivy League V it 


doesn't have a football team." 
Sometime next year. The Streak 
should end. Last Saturday, on a 
freezing field in Providence, 
Rhode Island, Columbia's team 
played their best football since 
they beat Yale all those years 
ago- They lost, to Brown, 19-16. 
But toe winning touchdown 
came Just 47 seconds before time 
and the other measures of suc- 
cess in this statistically-minded 
sport - yardage or completed 
passes - were in Columbia’s 
favour. 

"We’ve finally turned the cor- 
ner," said Mr Larry McEIreavy, 
the team '8 current coach. "I 
think we’re all feeling something 
Columbia hasn't felt in a long 
time." 

Next autumn, the vanity team 
can draw on the special recruits 
from the lower admissions stan- 
dards. Already II footballers 
have been admitted. 

Mr Dave Anderson in The 
Times grumbles that the whole 
thing is unfair to the 11 brighter 
applicants who were bumped. 
But the freshmen team is the 
strongest in Columbia's history. 
They have not lost a game all 
year. As Coach. McEIreavy says: 
By next autumn, teams are 
going to have to really buckle up 
when they play ua." 


• 1 1 1 » ®et piece battle, without an 

Game of give and take 

O the old instinct began to return. I 

could see an unwatched comer 
where a couple of cocks were 

helped by the mass rearing now that I have teat the tune. But not stealing away. I saw too where a 
indulged in by many shoots. altogether. few strategic handfuls of grain 

In toe old days pheasants wore The other day I was on a farm scattered in a hedge bottom 
hatched off and reared by where I used to enjoy my sort of 5°““ a few venturesome 
broody hens. These brought up shooting. It had all changed. birda leave home. If they were 
their chicks Until they roosted There were beaters In uniform " ext door, I said to myself, I 
and were often turned Into toe with flags, organisers with radio know bow I would get them to 
woods with them until they set- sets, marked posts for the guns c 9, rae and visit me. Before I could 
tied. It gave them a sense of to stand. The birds flew over “ ow t myself to be tempted, fur- 
home ana they seldom wandered fairly high and predictably, and titer I drove away. 


a row could fallow. It was even 
worse if the shooting waa let. 
Why should some city gent be 
able to get between me and a 
sport which I frit should belong 
to a real countryman? 

Then I became a landowner 
myself of about 60 acres. This 
completely altered the situation 
and also my attitude to those 
who used to Indulge in a little 
illicit shooting on the land which ' 
I had acquired. 1 no tengo: joined 

in their depredations. 

But it Is one thing to own a Mt 
of land and quite another to per- 
suade birds to come onto it so 
that they can be legally shot. 
The rich can rear. thrown but 
those of us on their boundaries 

bad to tempt them to cross the 
fences. In tote I had an advan- 
‘ — because the pheasant and 
a* game lords too are feral 
under the law. They belong to 
the land where they are at the 

time and a» long as I had a game 
licence I could snoot them 

There are many ways of irahto- 

Ing. pheasants to migrate, A 
chemist once gave me some oils 
wfth which I was to aoak my 
books and flwn vptifc through the 
neighbours' fields or down a lane 



broody hens. These brought ut 
their chicks Until they rooetec 
and were often turned Into toe 


Into toe 


Country 

Notes 


home ana they seldom wandered fairly high and 
far. Those hatched in an lncuba- busy ladles wit! 
tax and then turned out into fallen Jt was as 
pens have no homing instinct as ■ 

had the hen-reared birds. — 

There were of course wild — aea — . 

birds as well and I used to have 

enough to have a few pleasant — 

days rough shooting with a few 
friends, using dogs to move the Onr Humidified 1 
game and taking ft Ut turns to P? 4 ** 1 “"S** 0 *! 
beat or stand. Quite a skilled gf 
operation really and one in <=*«*■ 


where pheasants were known to heat or stand. Quite a skilled 
dust themselves. According to operation really and one in 
him toe birds would troop after w hich one has to work with 
me like suicidal lemmings. He nature. 

must have got it out of a book I haven’t shot a bird far a cou- 
because they never failed to do pie of years now and dont really 
so. fly cartful feeding and the want, to start again. In fact 1 1 
provision of a bit of cover l did don’t like the noise and the smell 
manage to find something to of powder. It is not that I am 
shoot most days. But it was hard against blood sports - it is Just 

going and my neighbours' keep; ,. — — — — ... . ..— * 

ere used to run their dogs 

through my strip when 1 wasn't TCHELITCHEW 

there. 

By the time I became a size- Worts tmsa de Artin'i Eataie 

able landowner myself I was too 

accustomed to allowing others to M Nmnaohcr » 12 D ecember 


i pick up the 
organised as 


Onr Humidified ctear mom earns 

perfect condition* fra a wide nags 
of penonaDy selected fine Havana 
Cigars. Mail Older *bo available 


John Cherrington 


HOW AKE YOU LIQUID ASSETS 
Weme tnym of Bonlcaia - Put - 


M 8mtk Stmt, Path. PH2 8DP. 
Trt 073 B 2 **l 9 


AD mated la nrict eooSdeocc. 

Kiqg Nangta Centner Wines. 

wssassras? 


shoot most days. But it was hard 
going and my neighbours' keep; , 
era used to run their dogs 
through my strip when 1 wasn't 
there. 

By the time I became a size- 
able landowner myself I was too : 
accustomed to allowing others to 
do my game rearing for me. I , 
reared none but continued my j 
old habits only tax a much bigger 1 
scale. By keeping my farm as a 
good game environment and hot ; 
too hoa vily stocked, birds used to j 
And their way there without spe- 
cial help. In this 1 was greatly ; 




- The 
Secret Garden 

AROMATICS 

EXECUTIVE 
GIFT SERVICE 

A oompilmentary service to assist you with 
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XTV WEEKEND FT 


Financial Times Saturday November a 1987 


Saleroom 


Print power 


Anthony Thorncroft . 
reports on the image of 
prints, which are now 
attracting higher prices 
in the salerooms 

THE SALE of Van Gogh's 'Irises' 
for $53.4m stole the headlines In 
New York this month but 
equally startling was Sotheby's 
auction of modem and contem- 
porary prints which totalled 
*701, with only 1 per cent unsold. 
Again it was the Japanese that 
saved the day, with around half 


The main one they missed was 
a portfolio, one of a hundred pro- 
duced, of Matisse's 'Jazz', which 
sold for $410,000, to a continen- 
tal collector. The price summed 
up the extraordinary demand for 
prints, both Old Master, and, 
especially, modem. Only two 
years ago dealers were offering 
'Jazz* for not much more than 
$100,000. 

Next week it is London's turn 
to wallow in prints. On Tuesday 
and Wednesday Christie's is 
holding sates, and on Thursday 
and Friday Sotheby’s puts nearly 
seven hundred under the ham- 
mer. On Saturday the third Lon- 
don Original Print Fair opens at 
the Royal Academy for four 
days, with 26 leading dealers 
offering original prints, which 
are the original composition of 
the artist 

Quite why prints are so popu- 
lar is hard to fathom. They are 
much cheaper than paintings for 
those desperate to possess an 
original Picasso or Rembrandt 
The Japanese find they fit more 
comfortably into their homes 
than cumbersome pictures. 
There is also the Oriental desire 
to own something exactly the 
same as a neighbour, rather than 
the western obsession with the 
unique. And while the Japanese 
buy mainly modem prints, there 
is still a tradition among know- 
ledgable continental and Ameri- 
can connoisseurs to acquire the 
prints of those Old Masters, such 
as Rembrandt and Durer, who 
were active print makers. 

Whatever the reasons, the 
prices for what, after all, should 
be similar images tell the story. 
This month in New York one of 
Picasso's most famous prints, ”Le 
repas frugal’’, fetched $100,000( 
or £60,000 plus). In June Soth- 
eby's in London sold one for 
£64,000; two years ago another 
went for £27,000: not a bad 
appreciation for a print which 
exists in over 250 copies. 

But then Picasso, Matisse and 
Chagall (early Chagall rather 
than late) are currently the 
sought-after names, especially by 
the Japanese. The lower and 
middle ranges of the market 
have not enjoyed a significant 
price appreciation. Even Munch, 
one of whose less ‘Nordic* 
prints, “Madonna*, sold for 
$250,000 in May, is a thin mar- 
ket, not yet bolstered by Japa- 


nese buying and therefore fickle. 

The highest prices next week 
should be paid at Christie's, 
which has a fine collection of 
prints by German Expressionists. 
An early colour lithograph by 
Kirch ner could go as high as: 
£150,000: a similar print sold at < 
Christie's in July for £165,000. 
This is a familiar story: one high 
price tempts out comparable 
prints and the market holds its 
breath to see if the demand is 
still there. 

At Sotheby’s the interest is in 
modem British prints. Just as 
the oils of British artists of the 
20th century have been rediscov- 
ered so their prints are appre- 
ciating rapidly in price. In the 
summer Sotheby's sold a set of 
six by Christopher Nevinson for 
£22,000, which were valued at 
£5,500 in 1980. This "Futurist" 

school is already widely appreci- 
ated- Now attention is snitching 
to contemporary artists. A Frank 
Auerbarch painting could cost 
£100,000: a rare set of six dry- 
points of nudes, produced 
around 1954 in his Royal College 
of Art days, could make £15,000. 

Few collectors of modern 
prints also buy Old Masters, and 
the Japanese have only just 
started to take an interest It is a 
quite different world, requiring 
great expertise in distinguishing 
watermarks and later refine- 
ments. The original work of the 
greatest print maker, Rem- 
brandt can, for example, range 
over two centuries. 

Christie's is offering a good 
range of Rembrandts, some with 
the excellent provenance of com- 
ing from the Fogg Art Museum 
at Harvard: American institu- 
tions sell off their surplus stock 
with a businesslike bravado 
which stuns comparable British 
musuems. Sotheby's has a good 
run of etchings by Hollar, most 
of which should go for under 


AS I was saying last week, part of the point of the 
hamper in the container itself. Choose them well and 
they go on giving iMring pleasure, way after the 
contents have been devonred- 
Semember, too, that hampers don't only have to be 
filled with delights for the stomach - some of the 
most welcoming hampers come filled with less 
obvious delights: delicious lotions and potions for 
bath and body, inconsequential frills and smells for 
house *"d home, crisp and useful accessories for 
office and desk, painterly effects for teenage faces. 
If yon have the time and energy to put together a 
few hampers yoorseif this Christmas then here are a 
few suggestions- some traditional and classical, 
others less conventional. 

LUCIA VAN DEE POST 

Wicker world 
of luxuries 



Drawings: James Ferguson 



Picnic basket lined in Scottish tartan and trimmed with 
Grey white or black hat box from English Eccentrics, navy ribbons^ Q> and p S5.15£ 1 £0 per cent wool 
printed with one of their idiosyncratic prints( choose Tartan tablecloth also avaUable^4^15 Cpana PS3.30). 
from faces or hands). £19.60, 155, Fulham Road, London From The General Trading Company, 144, Sloane 

SW3, London SWl. 



£1,000, as well as < 


coloured 


Gheyn's “The exercise of arms", 
depicting early 17th century sol- 
diers. Sadly, the prints will prob- 
ably be split up Ire the successful 
bidder, who will pay around 
£30,000 for them. 


Anyone Intrigued by prints 
should visit the Royal Academy 
Fair which offers over 5,000 
prints covering five centuries 
.from under £100 to £100,000. It 
has been organised by Gordon 
Cooke of Garton & Cocke, which 
will be showing the work of Rob- 
ert Be van as well as Nevinson 
and Whistler. 

Setting aside the rapid price 
Jumps of recent years for the 
finest quality prints there are 
still bargains among 18th century 
mezzotints and 19th century art- 
ists like Whistler, as well as con- 
temporary artists. And there is 
Matisse's 'Jazz' to inspire the 
mercenary buyer. It was pro- 
duced in 1947. In the early 1950s 
a New York dealer was offering 
for $400 the portfolio which sold 
in New York this month for 
$400,000. A hundred times price 
appreciation for a pleasurable 
woik of art must be some incen- 
tive for browsers. 


Food for 
Thought 


IT IS difficult not to get a bit 
cynical about the displays of 
Christmas hampers which fill 
the food departments at this 
time of year. Beyond any resid- 
ual carping about the commerci- 
alisation of the religious festival, 
there is their manifest unsufta- 
bleness for anyone you or I have 
ever met 

"Gifts” is of course a name for 
the kind of merchandise that 
nobody would ever buy for him 
or herself. But who could con- 
ceivably want to feast on the 
fantastic edibles that lie amidst 
the tinsel in those hampers - 
“The Chuzzlewft,” “The Rotfing- 
dean' and so on? How about 
some shortbread petticoat tails, 
my dear, and a few capers in 
vinegar washed down with a 
glass of Ruby Port and one of 
Yugoslavian Riesling? 

No thanks, I'd rather have a 
Big Mac or a baked potato. Aha, 
but that misses the point - ham- 
pers are not meant to be food, 
they are little unforeseen, luxu- 
ries you wouldn't buy yourself. 

So within these terms, what 
would I like to find in my ideal 
hamper? Money being of course 
no object, having noted the 
uniquely protective and insulat- 
ing effects of £60 notes used as 
packing material, I will pass on 
to the contents. 

Let me get booze out of the 
way first. No wine at alL Wine is 
for me to buy, for drinking with 
food at my place, so no wine. IT 
there is to be drink (and there 
usually is) ray choice would light 
on some of those French aperi- 
tifs that currently find no mar- 



ket in England. Suze to begin 
with: nobody’s favourite drink, a 1 
bottle would last anyone for 

years, with its strangely medici- 
nal flavour and complete lack of 
cachet. But 1 imagine myself 
uttering the unlikely words 
“Would you care for a Suze?* as I 
twinkle among the tall bottles. 
So Suze let there be, and Pernod 
45, and Araer Picon and even ■ 
Ambassadeur. 

Now for the food Apart from a 
little caviare for madame, pre- i 
served foods are always a bit 
dodgy, but some foie gras would 
be nice. Not pate de foie gras, 
which is just very nice pate, but 
the entire liver. Not - since I'm 1 
choosing - in cans, but in those 
Mg round glass bocaux, through 
which you can see it lurking, 
pink swathed in yellow fat. 

Things obviously home-made 
by the donor can be wonderful - 
although only as good as the 
donor. Jam and marmalade by 
all means, and I have wanted for 
years to have a friend with a 
walnut tree who wilf pickle wal- 
nuts for me in wine vinegar 
instead of the acrid black Quid 
used for commercial pickled wal- 
nuts. Or a nice French friend 
who will layer the fruits of the 
summer in eau-de-vie as they 
come into season: I can dredge 
them out two or three at a time 
in their fragrant juice, to be 
eaten in a wineglass with a 
spoon. 

What else? I should like some 
tins of nuts - things you never 
buy for yourself but which are 
life-saving when someone drops 
in unexpectedly and a bottle is 
opened. So let me have a variety 
of nuts - salted. In tins, almonds, 
cashews, pistachios, macadamia. 

What eke? Looped and twined 
and stuffed around these things* 
like tangerines in a Christmas 
stockings, I should like bulbs of 
garlic, preferably the pink land 
that keeps a tat longer. To be 
honest, what I could really use 
poked into the odd comer would 
be truffles - not chocolate truf- 
fles, but the real thing: black 
truffles from the Perigord, 
wrapped In little screws of old 
newspaper, preferably 1 suppose 
"Sud Ouest” 

The trouble with truffles is 
th at: they smell so very asser- 
tively. It wouldn't bother me and 
it wouldn't corrupt my jars of 
foie gras or my tins of nuts. But 
what would the postman and my 
Christmas guests - in-laws ana 
tactless children - think? I have 
no doubt that truffles in cans 
and bottles win not do. They are 
quite nice and provide the little 
cubes of coal-black in one’s gal- 



Traditional Norfolk potato basket made from unstripped 
English willow. £15.95 (P and p £1.50) from Naturally 
British, 13, New Row, London WC2. 




Pinecone rimmed basket from Indonesia, would make a 
good plant-holder afterwards, £15 from The Conran 
Shop, 81 Fulham Road, London SW3. 


Traditional wicker hamper.ideal for picnics, £24.45 (p 
and p £1.50), from David Meilor, 4, Sloane Square, 
London SWl and 66, King Street, Manchester M2 4NP. 


an tines which look so. serious. 
But they lack that overpowering 
smell of rot and damp earth that 
I is tite whole point of truffles and 
in the absence of that HI not 
bother. 

• I think Christmas hampers are 
meant to be eaten fairly quickly, 
rather than filling the store-cup- 
board for a year, and 1 hope I 
have met this requirement - 
1 although the Suze may hang 


about a ML I think I can rely on 
my wife to have raided the 
tinned nuta within a fortnight 
and foie gras never ' lasts in this 
household, so come the middle of 
January LH be left with a lot of * 
garlic on my hands. Nothing 
wrong with that And it won't 
seem like a Christmas leftover. 



Peter Fort 


Trollope put to rights 


Marvellously soft and relaxed tough black leather and 
canvas briefcase, beautifully finished, large enough to 
take some fine bottles. By Mandarins Duck, £195 (p and 
p £3.50) from Astrohome, 47-49 Neal Street, London 

WC2. 


"WHEN 1 WAS a very new MP* 
said Peter Walker, "Harold Mac- 
millan told me he always had 
either a Gibbon or a Trollope by 
his bed. *You can open a Gibbon 
or a Trollope at any page and 
begin to read with great Mea- 
sure, the writing is bo beautifully 
balanced." 

Mr Walker, now Welsh Secre- 
tary, has been a Tiullopian ever 
since, and earlier in the year 
became a founder life member of 
the new Trollope Society. As 
such he will be among the first 
to benefit from a long overdue 
initiative - the first publication 
of the complete works of 
Anthony Trollope. 

• The Folio Society, this year 
celebrating 40 years of producing 
classics for members, is to pub- 
lish the whole canon in a 
£500,000 undertaking over 12 
years, and has agreed with the 
Trollope Society to use the Folio 
text in its own, unillustrated, 
edition. There will be four Folio 
volumes a year beginning in 
1989, a personal triumph for 
Trollopian chairman John Letts. 

Why there has never been a 
complete run of one of the three 
best Victorian novelists is a mys- 
I tery, particularly when he was 


so well thought of in his time. 

Nathaniel Hawthorne wrote 
that Trollope's books were ‘writ- 
ten cm the strength of beef and 
through the inspiration of ale, 
and are just as real as if some 
giant had hewn a great lump out 
of the earth, and pul Jt under a 
glass case, with ail its inhabit- 
ants going about their daily busi- 
ness, and Americans have 
always held the books in special 
affection - there are three Trol- 
lope societies In the US. 

uur Trollope Society came Into 
being last March in an upper 
room of the Reform Chib, with 
the contrivance of enthusiasts 
such as Sir William Reee-Mogg, 

chairman of the Arts Council 
and former Times editor, and 
now the Trollopiaxu' president; 
Nicolas Barker of the British 
Library and editor of the Book 
Collector, and John Letts, who 
has taken early retirement as 
managing director of the Folio 
Society to be chairman of the 
Trollope Society. The objectives: 
"To encourage the publication of 
the complete uniform edition of 
the worn of Anthony Trollope; 
and to promote a wider interest 


in the works and life of Anthony 
Trollope.” 

"The Folio Society had- pub- 
lished the Barchester and Pal- 
User aeries, but I' knew nothing 
of the single novels,* said Letts. 
“I discovered the unknown nov- 
els are of a much more saleable 
character than One would sup- 
pose. Novels like The Belton 
Estate, Ayala’s Angel, Mr Scar- 
borough’s Family, Lady Anna, 
Rachel Ray - novel aftra- novel of 
a very high standard, but not in 
series.” 

There are 48 novels, 36 of 
them singles. He scoured -the 
London library to find and read ] 
them and had almost got to the 
end when he found the first vol- 
ume of My Cousin Henry was 
out When called in it arrived 
with a card signed by travel 
writer J G links: "Dear Fellow 
Member (of the Library), 1 am 
sony for the delay in returning 
this but was half way through 
reading It to my wife. I think 
you wxB enjoy it - fry Miss Mack- 
enzie. Truly the Trollope barrel 
is bottomless.” 

The society write s to likely 
members almost at random. “We 
were surprised at their enthusi- 
asm. We wrote to about 110 peo- 
ple initially and something like 
75 sakl they would Join.” - 

What was also surprising was 
how many politicians still share 
Macmillan's taste. Among the 
first to sign on were Loro Fey- 
ton, forms' Transport Secretary; 
Lord Youn& present Trade Secre- 
tary, and Leon Brittan, former 
Trade Secretary. Her does high 
Toryism seem to be a prerequi-' 
site, for Liberal deputy leader 
Adam Belth has joined, as has 
Roy Jenkins. 

The sometimes Byzantine plots ; 
of the novels appeal not oiuv to ; 
politicians: Lord Perth, First 
Crown Estates Commisdoner, is 
a member; Basil de Ferranti,, 
chairman of the electronics firm; 
Sir Jack Hayward, the develop- 
ment mogul and philanthropist 
and journalist ana wine expert 
Cyril Ray have all joined. A total 
of 2S0 have now been written to 
and 174 are members. Annual 
membership is SB. foundation 
membership for two years costs 
£70, £100 buys life membership. 

When John Letts retired from 
the Folio Society after 15 years 
at its helm, having steered it 


from near bankruptcy to a finan- 
cially healthy dub with 40,000 
members, making it attractive I — T/x 
enough for printing giant Robert 1 \|l 1 
Gavron to buy it, his colleagues J 1 
presented him with an ode ' ! 

which ends: 


c* ZECH & SPEAKP 

\*Jl OF JERMYN STREET JLj 


Though he may have wooed a 
Trollope, 

(He could not resist a Trol- 
lopej 

We may end up doing Trol- 
lope, 

Every year until we’re old. 

The Trollope Sodety is at 9a 
North Street, London SW4 OHN. 


Simon Tait 



for 



NOWIN LONDON 


HE JEWEL AMONG 
lNDMADE BELGIAN 
CHOCOLATES 

33 Moauwcb Scraee 
London WCZH 9DD 
'fikOWMIttO 


pit off Seven Dtab 
(Cb-cnt Gwdcn) 




N? Fifty Six 

3 fl EBOtr STREET, LONDON SWIW 0 QD 
TBli 01-730 8013 

Unusual and StyNsh 
'Gila for Christmas 


BrcfheSxAotkM 
SS6 BnA Read, London SW6 
01-731 201$ 


Arts Review 


THE N? 88 RANGE FOR MEN 
Now at HARRODS Mens Fragrance WnTI 

Czech G? Speaker 39c Jcrmyn Street, London SWl 
and, 10 Tunsgate, Guildford, Surrey 

—POSTAL SHOPPING SERVKE/BROCHUaE FAX: 01 .981 TEL: W- M&tSQ w 

THE ENDELL STREET PLACE 

Toys, Toys, Toysl. 

The Amazing Danny Morrell Show 

Esgjbndfc nett origtod toy muter— -with fata Tvmbtti^ Hippo Car Stunt Team, Owb 
on Sou Boards, Rat Tanks, the FBp Cmtxxtfr. and Snoaang Wjbbtl*! 

- Pofammcf'fOiHy Emm December 1st to Christmas Ew. 

Ako, a One sekeriaa fiom David Pbgenoo, Toys, Toys far CJtfkJrtn. Whatsoever 
Things, Bh*c Cat Toys, Liorel Designs, and many other tradinwul wooden tow and 



For Big Kkfa »e haw The Kmringno GoQecttBa of lead soUmts, hand painted fa One 
dead. Covering onr forty ngknmn, sB « ly hand from 19th century moulds. 

Open Mon-fin 1 8-00-7.30, Sit 10.00-4*00 — Telephone 01*240 1069 
33-19 Endefl Street, Cavcnt Gordon t S nanuses from Covwtt Garden Sextant 


cieyvcj-s-^ 




Financial Times Saturday November 28 1987 


WEEKEND FT XV 


DIVERSIONS 


Lucia 
vander 
Fbst 



It’s the forethought that counts 


Christmas is coming... it 
always does. If, like me, 
all you've bought so far 
is the wrapping paper 
Clovely Victorian-style 
rolls £2.95 for 5 sheets) 


then maybe you need 
help. For those who 
think that only their 
relatives are difficult, 
here are some hard to 
please characters with 
suggestions for the sort 
of presents that might 
just bring a little gleam 
of pleasure to the eye on 
Christmas morning. So 
let me introduce you to 
..Jason, Maggie and 
Graham, Charles and 
Susan..... 


could gee Urn a set of very matt Creuset cookware and htandera held, you get the picture? - _and 
black “designer tools" - so beanti- for preparing wholesome vege- love muff with a mess 

ful they are good enough to tartan soups, wooden bowb for a wide selection at 

leave lying around anywhere, serving vitamin-rich salads, and Books, 37, Grays Inn Road, Lon- 
549 the set. sturdy glasses are just the Bort of donWCl. 

Jason is a very fussy dresser so thing uiat would go down wdL Maggie can be persuaded to be 
~*'d be wise to a dd roach the Elizabeth David, 40 Bourne frivolous, however, so. . .what 


Find 



P er fe ct Glass Shop, 5 Park Walk, 
London SW10 would go down 
weQ. A hand-blown champagne 
bucket at £45.99, or a pair of 
brandy glasses at 520. If you're a 


wanoy glasses at azu. if youre s unworn little items he 1 
favourite godchild with what given down the years. If 
you might call "expectations* are what you'd to gi 



JASON 


have that sleek, clean look so 
beloved of design cir c l e s. Made 
from stainless steel it Is water 
resistant to 100 metres (better 
buy him a depth guage while 
you're at it), has a sapphire glass 
face and a black or tan strap 
(5395). P 

Hot name in torches is Maglite 
and even though Jason doesn't 

C in for roughing it, the Maglite 
i become such a cult number 
that he could happily leave It 
lying about his uncluttered flat 
as serious evidence of his ability 
to recognise excellence in indus- 
trial design. They're made from 
black anodized aircraft alumin- 
ium, the best size Is 6.75 indies 
longjta light Is 70 times brighter 
than other lights of the same size 
(517.10). 

His flat stfli isn't , equipped 
with everything he needs ana he 
could do with a really good lamp 
for his desk. The London Light- 
ing Company, of 1% Fulham 
Road, London SW3 has just the 


Street, London WC2 would go 
down well, but If in doubt ‘ 
give him a fistful of sods- 
He'd love a chic 
gage for those 

stops that wiB surely soon come 
his way. A smart buck Mandar- 
ine Duck case, all ribbed rubber 
and canvas, very bendy, vary 
trendy, at 5160, would be fine. 
And he'd appreciate a proper 
espresso coffee machlne.559.50 
from Butlers Tea and Coffee, 26 


thinff , good honest functional 


ibt just cookery equipment, nothing too weekday visit 
fancy- Saba tier knives, those Maggte is a 
of hag- great classics of the kitchen, the uverapeuti 


522.50 will pay far a 


great believer in 
peutic value of making 
thinff at home Oust what our 
grandmothers did before televi- 
sion) so give her Kaffe Fassetfs 
Glorious Needlepoint, £16.95 
(Century Hutchinson), and ah a 


an spend happy, creative hours. 
If you think t? 


u you think that Gr 
needs pampering, gi 
couple of bottles of I 


that Graham also 
ve him a 
fine wine. 


...is an upwardly mobile pro- 
ducer on a breakfast show. He 

has a large white flat in Camden 

which he. is at pains to keep job - made from nickel and brass, 
fashionably sparse, the better to designed in 1929 in Sweden, it 

has the dean lines he loves and 
the functional effectiveness he 
so admires. From the 

range, the SF27 is 5244.65. 

From Authentic* Jason would 
love the smart Japanese all blade 
desk set that fits together like a 
jigsaw puzzle and includes 
among other things a stapler, 
scissors, a knife, sellotape, and 



. or a richly ready claret 
from Sainabury s - he would 
approve of that). They w£Q come 
in handy for when his home- 
made wine turns out not quite as 
he hoped... 


set off his Bledermraer furniture. 

Jason fancies himself as a 
modem man working at the fore- 
front of an up-to-the-minute 
medium, so flatter his ego with 
some of the very latest gadgetry. 
Don't, far heavens' sake, offend 
him by giving him a CD (com- 
pact disc to you) - now that 
they're to be found everywhere 
he can't wait for his full DAT 


—are very Socially Concerned. 
They live in Stoke Newington. 
Some of their friends live in 
Hackney, parts of Islington and 
as their da haunts get yunpified 
they're spreading into South 
- -*•**«, Baw w t iq London. Their children go to 
hole punch. It measures just 4 state schools where they learn to 
"" he dub Maggie and Graham and 


like Casta's mini-version at about 
5109. 

The shops for Jason are 
Oggetti of 1 33 Fulham Road, 
London SW3, (which now has a 
catalogue ana sells by mail 
order), other branches at ICO 
Jermyn Street, London Wl, and 
2-New Bond Street. T-nnAm Wl; 
Authentics of 42 Sneltan Street, 
' London WC2 and Astrohame af 
47-49, Neal Street, London WC2. 

He d love almost anything 
from Oggetti (but be careful to 
check out what he's got) - In 
particular this year's "in' watch 
is the Aldo Rossi - you can 
choose from a fob version or 
wrist (more - Jason 1 think). Both 


new 
with 

the ritual of the morning shave 
then they hardly come smarter 
than the new Porsche blade 
chrome pocket shaver - 599.96. 

Fast F o rwar d , 14a Ne wb urgh 
Street, London Wl is another of 
the shops Jason loves. A haven 
far the newest, smallest, latest 
gadgets of every sort - look for 
credit-card sized gadgets and 
mini television seta. At Joseph 
Pour La ' Maison, 16 Sloane 
Street, London you could find 
him a combined calculator and 
notebook, the size of a credit 
card, an in blade rubber far just ' 
525. 

At Malcolm Levene, 13-16 Chfl- 
tem Street, London Wl you 


great 

would always come in handy. 

Crafts, of course, are very 
much up their street. Hand-made 
is so much, better than machine- 
made, don't you think? So take 
in a visit to the Crafts Council 
Christmas Exhibition at 12 
Waterloo Place, London SW1, 

where some 48 di ff ere n t crafts- . _ 

Rupert St, London Wl. Mail men (whoops, crafts people) are Buy him as many bottles as you 
order available, £6 a and p. selling their wares - pottery, jew- can afford of a fine white bun 

ellery, baskets and woodwork at ’ ” ’ * 

prices from 510 up to as much as 
5750. Plastic laminate earrings 
and brooches for Her (58.05), 
some honest earthenware (from 
£1830) for Him. 

Maggie and Graham spend 
most oF their holidays walking in 
the Lake District so a specialist 
map from Stanford's, 12-14 Long 
Acre, London WC2, would go 
wdL Or what about some real 
wool walking socks, 5630 a 
from Alpine Sports, 01- 
Strand, London WC2. 

They love anything from Third 
World countries, In particular 
rugs and dhurries. You could 
always look in the specialist mail 
order catalogues like Oxfam, 30 
Murdock RcL Bicester, Oxford, 
teL 0869-246011 (but bear in 
mind that this is where they buy 
their presents, too). Byzantium, 

1 Gooage Street, London Wl is a 
shop they love. Here are authen- 
tic ethnic ruff in lovely colours 
at prices ranging from 5935 to 
5130 - choose from Indian, 

Greek, Turkish. Loti of lovely, 
colourful jewellery, too, of the 
sort that looks good with the 
clothes that Maggie buys in Mon- 
soon's annual sale. 

From the Oxfam catalogue 

choose’ table arid kitchenware, never had to wony about— well, 

m - 

c 

NE11 

out for silver and fired day jew- 
ellery, which is particularly 
attractive and good value. 

Maggie loves cotton tights - she 
disapproves of synthetics - so put 
some in her stocking. Buy them 
at tire Sock Shop or at Ware- 
house (5899) a pair. She also 
likes prafumes and skin care 
products but only if they are eco- 
logically sound and made with- 
out cruelty to animals. So buy 
her a nice ethnic basket and flu 
it withproducts from the Body 
wdeda an " 


you might think it an Invest- 
ment to give him an original art 
nouveau claret jug from Mans- 
field, 3935, Drury line, London 
WC2 at £160. Less expensive but 
equally elegant in its own way is 
the rechargeable glass soda 
siphon with an elegant chrome 
mesh cover - at 539 from 
Nichols this would would . 


to persuade him into a colourful 
number from a trendy I talian 
designer - his drawers are 
already full of any number of 
little items he's been 
clothes 
give him 
take a crip down Jermyn Street - 
for shirts stick to classic Bengal 
stripes in fine two-fold poplin (N 
Lewin do some of the best value 
of all), plain classic colours for 
his lamoswool cardigans and his 
cashmere sweaters, ties from the 
very best names. 

He'd k>ve a classic adk dress- 
from Harvie ft Hudson, 


him daily of your munificence as ’■ j/™“i time on her hands she hj 

he poina out his nightly whisky ^, Jerm g s g^ffi f . dark . c ^. c old-fashioned notions of doing 
ana soda. colours, bet ween 5155 and 5175, uttip needlework - sive her oi 


For his opera-going nights you 
might give him some opera- 
Trevor Phillips, 76a 


Jermyn Street - again not cheap 
but possibly an investment at 
5100 a time. 

He's quite a rating fan so the 
nds. Hot Money, 
J0.96) would 
hat 


p and p 52.60) or a pair of their 
embroidered velvet house slip- 
pers (544.50, p and p 52.60, sizes 
oft -12, in navy, wine and black). 


children won't be able to pinch 
them). Or get her some ravish- 
ingly pretty pillowcases printed 
with a blue and white print 
taken from an 1820 Stafford- 
shire plate - at 513 each they are 
unique. Find them at Putnams, 
72 Mill Lane, London NW6. 

More really pretty things of 
the sort that would blend in with 
the gentle charm of the farm- 
house can be found at Graham & 
Green, 4 & 7 Elgin Crescent, Lon- 
don Wll. You could get her a 
kelim rug to cover over the bare 
patches in the existing sitting- 
room carpet, (prices start at 
5100) or some lovely old-looking 

aiewooc’ 

(59.95 and. 

Now that she has a little more 
has 
_ a 

little needlework - give her one 

of the marvellous kits now 
around. Graham & Green stock 
the authentically Victorian 
looking cat and dog cushion kits 
each. 


mapTewood j^iotograph frames 


new Dick 
(Michael Joseph, 
give him sev 


MAGGIE and 
GRAHAM 



_ appy hours 

curled up in front of his own 
fireplace. He's very fond of 
thinff old and classical and so he 
would love the antique brass 
binoculars (5150, also from 
j - they are nine inches 
[and " 

can be found at 
Mansfield at somewhat lower 
prices - there is a hallmarked 
silver propelling pencil, made 
today out to the original 1880s 
design. 569. 

He does like his home to look 
nice so a really well-shaped bay 
tree in a good classical stone or 
terracotta pot from somebody 
who understands his tastes like 
Clifton Nurseries, 16 Russell 
Street, London WC2 would go 
down a treat. 

Though he's not often known 
to leave much of his fine claret 



at the end of a bottle, sometimes 
t finish it 


even he doesn't 


all - so 


CHARLES 

.~is fiftyish, portly and a bache- 
lor (thoupi unconfirmed). He's 


their friends "the drabbles." 

The children aren't drabby at 
all-in spite of all the carefully 
crafted wooden toys, the cuSsen- 
aire rods and the pacifist propa- 
ganda what they really Bke is 
Care Bears, My little Pony, guns, 
high tech and highly-coloured 
synthetic toys. When older they 
like loud music, loud make-up 
and will wear anything so tang 
as it is black. 

Maggie and Graham are a bit 
moralistic about spending large 
sums of money. Canspicous con- 
sumption is very definitely 
against their creed. They like 
their a 


He loves his creature comforts, 
he's Into wine, food, fine books, 
doesn't like anything too new, 
too trendy or too disturbing. 

Opera tickets (but only, Fm 
afraid the best seats), some fine 
claret (Us godfather laid some 
down for him at birth with Berry 
Brothers in St James so they are 
veil to his tastes), a 

not too as s e rt i ve silk tie, a really 
[ victoria 
Rebecca 
Weldenfeld ft 


SUSAN 

...is in her early fifties and mar- 
ried to Richard, a farmer. She 
has spent most of her adult years 
taking care of the old farmhouse, 
Richard and their four children. 
She isn't used to spending any 
money on herself, partly because 
there never seemed to be enough 
to go around anyway and partly 
. because she always seemed to 

Str eet . London wlb 7 HL - only have more important things to 
available to members, life mem- think about. 


buy him the best stopper yet 
devised. Known as the vseu-vin, 
it works rather like a pump, 
sucking out the excess air and 
keeping the wine in as good con- 
dition as is possible (57.25 from 
The Wine Society. 53. Bolsover 


p res e n ts to be 


They ii 
worthy 


_ or 

self-improving. 

Trivial Pursuit would be fine - 
If they didn't already have it. Le 


Shop, Weleda and Beauty With- Nic h olson), an excellent cigar or 
out Cruelty. two, are the sort of presents he'd 

Maggte and Graham s up port a like. - 
number of causes • Nicaragua He sets a good table, does 
Solidarity Campaign. Anti-Apaxt- Charles, ao something from The 


ALTHQfJGfl J MUCH promfaienow 
oifegtoen to*fae.charftabto«8p«* 
the. annual Hospices de- 
Beaune wine auction - this year 
' FFr605,000 (560,500) was paid 
by a Lebanese businessman liv- 
ing in Luxeml 
alogue sin 
cuvee, for 
teur Institute in Paris - the high 
prices generally realised owe a 
* good deal to the publicity de- 
ment involved. 

Held always on the third Sun- 
day in November, the pre-sale 
tasting in the Hospices cellars 
provides the first public opportu- 
' nity of assessing the quality of 
the new vintage m the Cate d'Or. 

This . year, however, thinff 
were more than usually diff i cult , 
for after a very late vintage the 
sale took place on the earliest 
day possible, the 15th. As a 
remit, many of the red wines 
poured into the proffered tosteo- 
2ns from the assembled casks of 
the 25 cuvees were oat of condi- 
tion. 

Some were undergoing their 
second, malo-lactic fermentation, 
some had not started it and oth- 
ers had completed it. Conse- 
quently the colour seemed 
reduced, the aroma distu rbed 
and the flavour nan-fruity. The 
nine white cuvees were all 



variable vintage 


milky, with residual sugar in the 
incompletely fermented -out 
wines. Few, Including the profes- 
sionals, could make much sense 
of the wines. 

Fortunately, however, the 
Trois Glonetues week-end 
(so-called from the three ban- 
quets arranged over three days) 
provides other opportunities to 
sample the new wines, notably 
at the Hotel de Vflte exhibition, to top 


where around 10,000 wines, 
arranged by village, are set out 
for tasting from bottles of cask 
samples. 

The reds there showed much 
better in colour, bouquet and fla- 
vour and though more than 
usual appeared oxidised, this is 
always possible with cask sam- 
ples. Overall they gave a much 
better impression of the vin 
The whites were more 
but most were dear and I was 
able to taste some attractive 
leading Cote d'Ora and crisp Cha- 
blis, about which some contra- 
dictory reports have emerged. 

It is a regular complaint that 
this auction is held too soon 


after the vintage. The less impor- 
tant Hospice die Niiits auction is 
hdd cm Palm Sunday. Anothar 
criticism is that the Hoepices 
authorities do not do the efevage 
and bottling, for these vital func- 
tions are lot to the buyers, who 
must remove their purchases by 
mid-January or pay rising 
monthly interest charges. 
Obviously they have regularly 
> top up their casks with some 
other wines, to be hoped similar 
-le and qt 



many firms have 
dy affected by the 


had risen in the twelve months 
from 620,000 hi to 830.000 til and 
the whites from 270,000 H to 
350^)00 hL ‘ 

Obviously 
been adversely al 
falling dollar, but rather less so 
by the pound, which has 
regained some of its strength. 
The rise in wine stocks was wel- 
comed by most merchants as giv- 
ing mare stability than for some 
years. However, the higher stock 
levels are probably mostly 
among the lower appellations: 
Bourgogne Rouge and Blanc, as 
well as the village wines. 

It is at these levels that thee 
may be difficulties. but not far 
the premiers and grands crus, 
whose quantities are relatively 


Wine 


in style and quality, until they 
bottle them about 18 months 
later. However, the Hospices 
authorities call tor their receipts 
as soon as possible and wish to 
avoid building and maintaining 

additional cellars and staff to _ 

house and bottle hundreds of Picktog began at the end of an ^ 27 per *»nt 
casks each year, though to keep W^httendtor the fett fcw ™ V( £Jne: the UK less so, 
thmr standing it may come to with a fall of 12 per cent and i 

that. put Hum October 6 it was rather ^ cent. On the flthtr h«ml the 

Prior to the Mte.teadtag ^ gLu£,il 

Beaune merchants expressed 80 powers wno picked later 
hopes that prices 


of red and white burgundies in 
1906/1987 dropped by u per cent 


bership costs 520.) 

Though Charles is rather 
addicted to the paper products of 
traditional BojidStteet stationers 
he could be pleased by some of 
the elegant Florentine stationery 
accessories to be found at The 
Italian Paper Shop, 11 Brampton 
Arcade, London SwS. 

Poor godchildren could give 
him some fine tea or coffee from 

the newly rehoused Whittard A /v...*— .» m » - 1 . 

Co, now round in the new Con- 

£*22^*?* cotton night shirt in a Liberty 
would go down weft. SSVS? 

Charle8 kind •WrtffittW. If Richard cant find 


Now that the children, are 
almost off her hands she does 
long for a few of the more luxu- 
rious things of life. Now that 
life's a bit easier and she doesn't 
have to get up for the school- 
round she'd love some rather 
delicious nightwear, though it 
shouldn't be too flimsy because 
the central heating isn’t that reli- 
able. She saw the very thing at 


Susan loves her garden and 
spends many hours in it One 
thing that would make her life a 
great deal easier is a cordless 
telephone - she wouldn't miss all 
those calls while she struggled at 
the back-door to jet her wellies 
off. Answetcall's Ranger 2,000 at 
5130 would fit the bill 

Susan would love almost any- 
thing from Eximious, 10 West 
Halkin Street, London SWl, She 
keeps meaning to put the fs 
photographs in order so a 
hard-backed album with 
thick card pages, all relnfc 
at the spine and in dark chic 
colours like navy, scarlet and 
dark green would go down well. 
554.50 for 12 inches by 14 inches 
size, 53930 far the nine and a 
half inches by 9 and three-quar- 
ters inches. 

She also very much fancies the 
dehydrator from Elizabeth 
David, 46, Bourne Street, London 
SWl - this would enable her to 
dry her own fruits (imagine 
what she could do with the 
excess currants, apples and 
plums) and vegetables. At 584.95 
fp and i ‘ 


S 54) it sems a lot but she 
would earn its keep. 

Down in the country, enter- 
taining is a little on the formal 
side with quite a lot of smart 
dinners so she could do with 
some fashionable bits and pieces 
to add new life to her Jaeger 
velvet skirt and blouse. She's 
been dropping a few hints about 
the diamante bow brooch with a 
pearl drop that she saw in Har- 
vey Nichols jewellery depart- 
ment - not in the heirloom class, 
nonetheless at 539.00 it will add 
a bit of sparkle, while the Art 
Deco style black evening bag 
(51936) would also help to perk 
up her evenings cut. 


through 10 West 
London SWl will reveal a host 


In fact there are quite 
things she eyed ui t 
Nichols when she was last u 


a few 


to come to London he 


London - her day-time o 
think 


now that his eyes aren't quite 
amatening 


oair would go down well, while 
•his fondness far their daxk-ori- 
p tired, personally monogrammed 
clothes preservers is well-known. 

; His tastes in clothes is - well, 
small, particularly the whites. I conservative is the only word 
The US market, where imports ikhat comes to mind. Do not try 


MMIUU11 on* Will a UWb Ul r. l_ PC - *_J 

things to catch his fancy. An ele- by m * a ’ 55 P *™ 1 P 

gant magnifiying glass 

Alternatively, anything from 
After Dark, 62 Pimlico Road, 
London SWl would do very well, 
thank you. There’s a whole 
range of pretty nightdresses, pil- 
lowcases and warm quilted bed- 
jackets in a deliciously pretty 
pink on white print. 

Now that the children aren't 
around and she can begin to 
keep the house looking the way 
she s always wanted it to, she 
could do with a few really pretty 
things. She'd love some really 
beautiful sheets and pillowcases 
- maybe a pair of pristine white 
cotton sheets edged in lace from 
the Monogrammed Linen Shop, 
168 Walton Street, SWS (get her 
initials put on them and then the 


what they were, with 

would go 

oown weiL a set or midge scor- 
ers (518 with one initial), a new 
velvet bridge cloth (561) or a 
playing card holder (517) would 
make sure his bridge partners 
took him a bit mere seriously. 

A pair of gentlemen's shoe 
trees (somehow one never has 
enough, does onef), in fine pol- 
ished hee e hwp od with an adjust- 
able screw action, at 52930 a 


up in 
units, 

too, come to think of it are in 
need of a little sharpening up 
and some of the new gauntlet 
gloves (preferably cashmere at 
547.00 a time) and a soft clutch 
handbag given life and wit by a 
jaunty Bow (589) would do a tat 
for her morale. 

Her cooking has taken on new 
life now that she no longer has 
to cook three meals a day for 
teenage appetites - she and Rich- 
ard are embarking on a lighter, 
mare elegant phase with quite a 
bit more entertaining. Give her 
Recipes from Irish Country 
Houses by Gillian Berwick (56.95 
from the Irish Shop, 11 Duke 
Street, Wigmore Street, London 
Wl) - embellished with charm- 
ing drawings by Jeremy Wil- 
liams, it fs mu of exactly the sort 
of recipe she and their friends 
would love. 


growe 

shably 


come P»»SgraMd« beatwln^ &cenL 
down a little, lbr «ith<*ng*i it is Tfhfle those yrotagmg rarity or In 


advanced by 17 per cent and 22 


2/ 


The Royal Oak 




aisHgnet 


©\ 


La plus prestiff i ruse des signatures. 


AVAILABLE ATs 

ASPREY. GARRARD. LONDON HILTON. 
MAPP1N* WEBB. DAVID MORRIS, TYMt 
THE WATCH GALLERY AND WATCHES OF SWITZERLAND. 


r © 


frequently repeated that prices 1110 *d leas well, with a 

SthtaSsri^le bSr 1 !^ go^derirfdfaitimu^^ 
relation to the reel market, nev- At one end of the region Beau- 
ertheless g rowers note the auc- J 0 * 0 was a an rcc Bs and a much 
tion tremfiandfaitiaUy at least J^than 19% Atthe 
offer their wines accordingly. other end Chablis, picking tag* 

. In fact, however, prices rose ^ 80me fuccras. though 1966 
moderately: the reds W 9J9 per nay turn outfaebetter year. In 
cent, the whites by 83 per cent, Maconnais the crop was 
anoverall price mcreararf&S to 

per cent The riae in the reds *» ' “gy retobte to the Chatan- 
would have been greater but tex J*™ 3 var ^ a ^ e 600 h* 
falls in the bids for a few cuvees. CotedOr. 

Undoubtedly prices would The red wines are 


Whether consumers should 
buy 1987 burgundies may depend 
on how they look next year to 
the tr a di t io nal , wine merchants 
who buy a vintage eari^and of 


course on the state 
omy. 

We are unlikely, however, to 
have to make up oar minds all 
that soon and perhaps not before 
some indica tio ns of the prospect s 
for the 1988s are dearer. But the 
1967s are not to be ignored, 
and the 
be worth 

506 as against 714 last year, the Cote de Nuits wtok Ototaudylt *°l uillll «- when avaUable next 


unaouotemy prices woma The red wines are generally 5Zh. 
have shown a drop had there not better than 1986, altWahl SautalaS ^herald 
been many fewer casks on offer, tasted some very fruity 1986 
506 as against 714 last year, the Cote de Nuits wtora. ObviLSylt 
smallest number auctioned since has been a diffickmltri^Se to sprm& 811x1 BUmmer - 
298L The top prices per hogshead which the most expert and expe- 
for the red cuvees, with last rienced viniflers tha 



rnard Dames de Charlte, age yield per hectacre of only 
FFr38,000 (34*000); Cortpn Char- 2§3W for their red wines, com- 
lotte Dumay, FFr 85,000 pared with a normal average af 
Volnay Blondeau, FFr over 36hl, but the yield forthrir 
„ end Volnay San- white wines was a substantial 
tenets Gauvain, FFr 32,000 463 W, though «n»ll*r than the 
(34,000). 60 hi in 19£KS, which was very 

The smaller overall in crease in * ar ® tJ v 
the white cuvees followed a rale- Iti Meuxsault cellars I tasted 
room battle last year that took some very promising white 1987s, 
the Corton Charlemagne Fran- particularly from the first 
cols de Saline to FFr113,000. This growths. The lower 


Edmond 

Penning-Rowsell 


com mune with the 


appellation 


rer part of the 
be main village 
hailed and the 


Leursault crop was much 
smaller than in Pullgny and 
Chasaagne, though both were 
less than last year. I also sam- 
pled some e xc ellent , crisp, aro- 
matic and fruity 1986s, almost 
the better white bur- 


year it made FFr 70,000 - still 
the top price to the auction. Of 
the leamxig figures were the Cor- 
ton Vergennes Paul Chanson, 

FFr66,000 (76,000); Meursauft 
Ch&rmes Albert Gri vault, 

FFr66,000 (60,000); and Meur- 
sault Geaevrieres Baudot, 

FFr49,000 (37,000). Total for the 
wines was FFr14, 383,000 

(13,762,000). As to the level of p 

What, then, is the quality of ve none yet In very 
the 1987 burgundies? The short the market may open 
answer is "variable.’ As to Bar- before the Hospices aw 

deanx, die summer was poor, but cially far the whites, but not 

the unusually hot September year. & win probably not start 
weather saved the vintage, before the New Year, with prices 
which after a ffod deal of cow- similar fa last y ear, for there has 
lure Mon-setting of the grapes been a substantial rise In Mocks, 
and mUIeraudage failure of the At tlm end of August, the total 
grapes to swell, was bound to be quantity of red burgundies, 
smaZL excluding Beaujolais, in cellars 


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XVI WEEKENDFT 


My Book of 


the Year 


Our reviewers choose the books published 
this year they have most enjoyed reading 


I HAVE enjoyed wallowing In 
the sumptuousness of the Ulus- 
trations to Jeremy Cooper's Vic- 
torian and Edwardian Furni- 
ture and Interiors (Thames 
and Hudson£2{>.00.) and been 
surprised by the rampant ugli- 
ness of so many of the artefacts 
of the period. Cooper, once a 
dealer and now a writer, covers 
the whole gamut from the 
Gothic Revival to Art Nouveau. 
There are calm patches provided 


ing in its knack of seeing both 
the wood and the trees of 18th 
century serious opera, and a 
pleasure to read for its crisply 
expressed, infinitely discerning, 


and above all loving responses to 
the works themselves. The price 
is steep; all the same, this is now 
one of the select items on the 
operatic bookshelf. May its com- 
panion volume, completing the 
Handelian operatic overview, 
join it there soon. 

MAX loppebt 


by Pugin, Morris and Mackin- 
tosh; their seriousness is a wel- 
come relief among so much 
dross- 

This is not the definitive book 
on the furniture of the period 
but highly enjoyable. It made me 
see exactly why the Modem 
Movement had to happen and 
wonder also how on earth our 
great grandmothers survived In 
their claustrophobic and over- 
crowded houses. 

COLIN AMERY 


CHRISTOPHER HEBERTS The 
English: A Social History 
1066-1945 (Grafton, £20) seems 
a bit daunting at first glance, but 
is a book for dipping into, rather 
than reading at one go. It is 


essentially a compilation, a fasci- 
nating look at life in England 
through the ages - everything 
from the Oxbridge riots of 700 
years ago to crime and punish- 
ment In the Middle Ages, to 
Boswell's amazing sex life. 

Particularly striking is the 
16th century East Anglian 
housewife who instructed her 
husband to buy crossbows in 
London rather than longbows, 
because they shoot more easily 
through doorways - so very like 
one's own little expeditions to 
Hamiey’s. 

NICHOLAS BEST 


MAY I nominate two books that 
represent my ambivalent, equi- 
pollent interests in both history 
and literature? Richard Ollard a 
Clarendon and his Friends 
(Collins, £15.00) strikes me as 
the best of the year for. history, 
such mastery of the subject, so 
perceptive and sympathetic, and 
beautifully written. Ollard is one 
of the very few first-rate histori- 
ans now writing - too many 
third-rate ones cluttering the 
field. 

Victoria Glendinning has 
accomplished a difficult Job tri- 
umphantly with her biography 
of Rebecca West (Weidenfeld & 
Nicolson, £14.95). Almost impos- 
sible to get Rebecca quite right- 
so contradictory, inconsistent, 
part masculine, part feminine, 
Scots -Anglo-Irish, brilliantly 
clever and always fun. Glendin- 
ning treats her with justice and 
understanding. 

AJLROWSE 


THE MOST original and interest- 
ing book on tiie 18th century 


18th century 


Navy to be published for many 
years The Wooden World by 


ears The Wooden World by 
LA.M. Rodger (Collins, £17.50) 


IN THE year that he celebrated 
his eightieth birthday, Lincoln 
Kirstein has produced Quarry: 
A Collection In lien of Mem- 
oirs. This is a conducted tour. 


is also one of the most readable. 
It stands the whole subject on its 
head with a historical gusto and 
a wealth of fascinating detaiL 
The idea that the naval victories 
of the Seven Years war could 
have been won by the sort of 
no-hopers that Falstaff would 
have recruited has never made 
sense. Dr Rodger has given it its 
quietus, and has shown how for- 
midably efficient and well-run 
the Georgian navy was. 

RICHARD OLLARD 


E eter's classic Socialism and 
emocracy first published in 
1942. A new book by the US 
. Peter Ber- 


prophecy of doom), but amplifies 
and updates the discussion, 
bringing in a wealth of new evi- 


dence including the experience 
of East Asian capitalism. A 


of East Asian capitalism. A 
needed present for many. 

SAMUEL BRITT AN 


with characteristically pithy 
commentary, round his fascinat- 
ing accumulation of paintings, 
drawings, bronzes, photographs, 
and the varied memorabilia of a 
life grand In achievement. We 
meet a splendid Gerome of a 
Rothschild shooting party, por- 
traits of Kirstein by Lucian 
Freud, Pavel Tchellchev, Michael 
Leonard, medals, marbles, Bud- 
dhist divinities. The eye is 
beguiled, the mind held, by the 
resonances of the collection and 
the range of KIrstein's interests. 


IT has been a rich and varied 
year, but finally l enjoyed noth- 
ing more than Le Semlnaize de 
Bordeaux (Flammarion, FFr85), 
Jean Dutourd’s lively, lights 
hearted satire on the French 
sociological scene. Dutourd has 
always been adept at puncturing 
fashionable pretensions and In 


THERE ARE only a few books, 
unfortunately, that combine 
scholarship and charm. John 
Pemble's The Mediterranean 
Passion. (Oxford, £27.50) is one. 
The contents are as appealing as 
the title. There were quite a 
number of Victorians and 
Edwardians who left Britain for 


the range of Klrsteins interests. 
Splendidly illustrated, the book 
is a handsome production of the 


Twelvetrees Press of Pasadena, 
California. And as a pendant, let 
me recommend this year's publi- 
cation of Kirstein's Collected 
Poems( Atheneum, New York, 
$25), verse that is vivid, anec- 
dotal, the product of an ear as 
acute as the eye that chose the 

dazzling trove of Quarry 

CLEMENT CRISP. 


TWO OF this year's theatre 
books gripped me from start to 
finish ana my vote must there- 
fore be divided. 

The Life of Kenneth Tynan 
by his widow Kathleen Tynan 
(Weidenfeld & Nicolson,£ 16.95) 
is a brilliant fusion of affection- 
ate objectivity and sensible 
appreciation. Tynan, who died of 
pulmonary emphysema in 1980 
aged 53, waa the archetypal Isis 
idol turned media star, and the 
most gifted and important the- 
atre critic of the century. His 
lust for theatre was part of a lust 
for life, as well as a Lust for lust. 

His reputation, languishing of 
late, will be restored by this 
bookand further enhanced when 
Mrs Tynan releases the unpub- 
lished diaries and uncollected 
journalism. 

nmebeadi by Arthur Miller 
(Methuen ,£17.95) is a magiste- 
rial, enormously affecting auto- 
biography of a man who has 
lived by certain ethical and 
moral rules, defied all opposition 
to them, and written great plays 
in their defence. The passages 
about Marilyn Monroe, Miller's 
second wife, are no less dignified 
and impressive than his com- 
ments on McCarthyism and the 
colleagues who turned traitors to 
their own honesty. 

Timebends has the dream-like 



Julie Manet, the painter's niece, whose Diary is one 
of the Books of the Tear 


his latest worts, he has a good 
deal of fun at the expense of a 


group of research students 
labouring to produce unreadable 


labouring to produce unreadable 
theses on improbable topics, con- 
trasting these portentous endea- 
vours with the instability of 
their private lives and love 
affairs. 

There is a serious, if unspoken, 
underlying theme: the general 
decline in French educational 
standards. Dutourd has a firm 
grasp on the shifting patterns of 
contemporary jargon, and one 
hardly knows whether to laugh 
or weep at the linguistic absurdi- 
ties so neatly pilloried in the 
pages of this hilarious fantasy. 

ERIK DE MAUNY 


the Mediterranean, usually in 
search of more than the sun. 
John Pemble explains their 


fluidity of Death of a Salesman, 
a similar poignancy of a good 

man's journey through the some- 
times hostile terrain of his own 
life in a changing country, but a 
country he loves to the end. 

MICHAEL COTENET 


NO ONE but Oscar Wilde himself 
will ever have the final word on 
Oscar Wilde, but Richard Ell- 
mann's huge new biography of 
the man with almost everything 
to declare, as well as his genius, 
comes pretty dose. Oscar Wilde 


comes pretty dose. Oscar Wude 
(Hamish Hamilton, £16) is espe- 
cially good at revealing the 
power of paradox in a life at 
once mocking and moralistic, 
glamorous ana grim; whose work 
- though Wilde insisted other- 
wise - was and is still more 
important in artistic terms than 
the life. 

GAT FIRTH 


I MOST enjqyed reading Robert 
Rhodes James's biography of 
Anthony Eden (Weidenfeld & 
Nicolson £16.95). Not only is the 
author one of our most skilled 
biographers but he knew Eden 
personally and contrives to com- 
bine a measure of criticsm with 
basic sympathy towards his sub- 
ject He provides much revealing 
information (and even more 
revealing photographs) about 
Eden and his background not 
generally known to those who 
only encountered him politically. 
Rhodes James is also almost 
always fair to Eden's political 
opponents. Yet another merit of 
the book is that the author does 
not dogmatically claim to have 
solved the mystery of Eden’s 
tragic miscalculation over Suez. 

DOUGLAS JAT 


WILFRED THESIGER is a late 
and great Victorian who happens 
to have strayed into the present 
and his autobiography A life of 
My Choice (Collins, £15) is the 
expression of this remarkable 
character. In some ways a con- 
ventional Eton-and-Oxfard man, 
and astonishingly modest about 
his exploits ana travels, he has 


been at his happiest among Afri- 
can tribes In Ethiopia and 


MY CHOICE, Handel’s Opens 
1707-1726 by Winton Dean and 
John Merrill Knapp (Oxford, 
£55), is one of the great monu- 
ments of musical scholarship of 
our day - a mine of information 
lucidly delved, sharply stimulat- 


ROSE MACAULAY &t it about 
right The trouble with coun- 
tries " she said, ‘is that, once 
people begin travelling in them, 
they are apt to get over-written. 
No-one (apart from fans of 
Count Dracula) can say that of 
Transylvania, so Patrick Leigh- 
Fermor was on to a good thing 
when he set out, one day in 
1933, to walk from the Hook of 
Holland to Constantinople on a 
pound a week provided by his 
parents. It meant that he had to 


can tribes in Ethiopia and 
Sudan. That pre-modem world is 
unforgettably evoked. War 
brought Thesiger to serve under 
Orde Wingate, and the ensuing 
clash of personalities has a 
heroic ring. There followed the 
Long Range Desert Patrol, and a 
life In Arabia. Writing- without 
nostalgia, he is a defender of the 
old order doomed by progress, to 
him a most dubious thing. What 
with the men and the subject, 
this book already has the sense 
of being an established classic. 

DAVID PRYC&JONES 


dinning (WeWenfeid & Nicolson 
£14.95). Rebecca West lived a 
long and very full life- from 1892 
to 1983. She knew everyone who 


Financial Times Saturday November 28 198" 


TA 




. . f 






rtvania in the second 


cross Transylvania in tne second 
section of the journey, as told in 

Between Hie Woods and the 


cross Transylvania in the second 
section of the journey, as told in 
Between Hie Woods and die 
Water (John Murray, £13.95). 
As he describes it the country 
and its people are just as dotty 
and even more charming than 
one expects. But then, this trav- 
eller is a brilliant and beguiling 




*••■”* '*■*’ 




/V' : nv 


describer. And a lucky one. The 
Balkans seem to have been one 


Balkans seem to have been one 
vast conspiracy to entertain and, 
once at least, to flirt with him. 
Did he reach Constantinople? 
For the answer I must wait, all 
agog, for volume three. Mean- 
while we have this brilliant and 
enjoyable book. 

GEORGE MALCOLM 
THOMSON 


ADVANCED CAPITALISM has 
generated, and continues to gen- 
erate, the highest material stan- 
dard of living for large masses oF 
people in human history. It Is 
also a necessary, but not a suffi- 
cient condition of democracy, 
and indirectly of basic human 
rights. On the other hand it is far 
inferior to socialism in its ability 
to conjure up ideas and myths 
which legitimate it in the eyes of 
image-makers and ‘intellectuals’. 
Thus it is highly dependent for 
survival either on crude material 
results or on its being sur- 
rounded by traditional institu- 
tions such as religion and the 
family, themselves vulnerable to 
the rationalist values fostered by 
modem development 
This was the thesis of Schum- 
peter's classic Socialism and 


1 




t'- / • ." 




I v _ 


iw eM&r . *4. *"•" ’ 


Children in Northern Ethiopia, one of Wilfred Thesiger’s memorable photographs In “ Visions of a Nomad” 


economist sociologist Peter Ber- 
ger, The Capitalist Revolution 
(Wildwood House, £6.95) comes 
to essentially the same conclu- 
sion (without Schumpeter’s 


was anyone in the worlds of lit- 
erature and politics from the 
days before the first world war 
up to the early 1960s. Besides 
being a successful novelist she 
was an indefatigable journalist 
and critic and also found time 
fora very active social life: 

Faced with such a wealth of 
material, the temptation to pro- 
duce a doorstopper of a book 
must have been hard to resist. 


WITH FINESSE and good timing, 
Jocelyn de Moubray, a rum-lan- 
guid Old Etonian, produced The 
Thoroughbred Basina— (Ham- 
ish Hamilton, £12.95), which 
glided onto bookstalls just a few 
sobering hours before the 
autumns great stock market 
crash. 

The book Is subtitled Inside 


FEW BIOGRAPHICAL studies 
have covered so much ground in 
so readable a form as Walter 
Isaacson and Evan Thomas, The 
Wise Men (Faber A 
Faber,£i5.95). These portraits of 
six American statesmen Harrf- 


man, Lovett, McCIoy, Achesan, 
Bohlen and Keiuian are vivid. 


Glendinning gives enough infor- 
mation about Rebecca west to 


the Modem Bloodstock Industry 
and that is precisely where de 


mation about Rebecca West to 
satisfy curiosity without ever 
blunting interest by tedious 
detaiL Dame Rebecca's private 
life was far less successful than 
her public one, but both are viv- 
idly presented with tact and sen- 
sitivity. 

ALANNAH HOFK3N 


and that is precisely where de 
Moubray takes us in a fascinat- 
ing survey of an alternative 
investment market that Is 


strictly for the Big Boys. Only if 
you are seriously rich and phleg- 


you are seriously rich and phleg- 
matic to boot should you even 
contemplate dipping a toe into 
this most irrational of markets. 

De Moubray is sound and 
revealing an matters financial — 
he takes us through the blood- 
stock boom of the 1970s and '80s. 


Bohlen and Kennan are vivid, 
memorable and persuasive — 
well as informative. The balance 
in interest and weight, though 
not, alas, In price is the superbly 
edited Documents on British 
Policy Overseas, Series n Vol- 
ume Hs The London Cbnfer- 


deal of new material it effec- 
tively shoots down Brooke , as a 
hero of a war that needed one, 
and as a golden boy of the estab- 
lishment 

A tormented, suicidal bisexual 
among left-wing simple lifers, 
-until he was taken up by Edward 
Marsh. Churchill and the beau 
■numde of London hostesses, 
Brooke mistreated friends and 
lovers and coasted along until 
his death in 1915 on overrated 
verse and the diminishing asset 
of his remarkable good looks. 


unearthly beauty, both of people 
and places, but with a poignancy 
that reminds one at every turn 
of the impoverishment and des- 
pofiiauon of so many of these 
countries by natural and politi- 
cal disaster, or simply intrusion. 
Thesiger is content ‘just to 
remember.* The book, finely 
produced, allows us to share hu 
memories. 

GILLIAN DARLET 


diminishin g a: 
ble good looks. 


BRUCE CHATWTN continues tp 


ences, Anglo-American Rela- 
tions and Cold War Strategy, 


MY FAVOURITE by a mile Is 
Compact Edition of the Sup- 
plement to the Oxford 


tlous and Cold War Strategy, 
Janumry-June I960, 

(HMS0.536), a publication which 
amateur strategists will find 
more gripping than most studies 
of the British contribution to the 

cold war 

SABA STEINER 


Mmgilah Dictionary (Oxford. 
£751 edited bv Robert Burchfield 


£751 edited by Robert Bunchfle 
and dedicated to the Quee 


ana dedicated to the Queen. 
Together with the two original 
v olumes of Compact OED (£225 


the set of three volumes), it 
would make anybody's book of 


worlds and In explaining why 
confusion and uncertainty still 
surround the simple question of 
why one racehorse runs faster 
than another. 

MICHAEL THOMPSON-NOEL 


THOUGH BLEAK in subject mat- 
ter, and with few flourishes of 
style, Bernard MacLaverty’s new 
collec t ion. Hie Great Profundo 


The book sets him in the con- 
text of a world which, though it 
may seem small, had social and 
political influence as a cousinly 
•rival of the Bloomsberries ana 
even - Ironically, since Brooke 
became the icon - figure of 
respectable patriots - a. sort of 
avuncular predecessor of the 
Cambridge spies two decades 
later. It does not condemn, but 
uses documentary evidence, with 


prove in Songlines (Jonathan 
Cape £10.95) that you can saw 


Cape £10.95) that you can say 
more with less and that the true 
stylist hides his style. This 
booMpparently about Aborigi- 
nes is much more about men and 
movement and violence. A mod- 
em vision of The Wanderer. ■% 
JOHN RALSTON SAUth 


and other stories (Jonathan 
Cape, £9.95) turns out to be 11 of 


chilling, lively effect to under- 
mine all sorts of long - accepted 


TWO NOVELS read early in tSs 
year have stayed with me moor 
than several -read since: Hill®; 
Roth's The Connterilfe (Cape; 
£10.95) and V.S. NaipauTs The 


myths. 


sorts of long - accepted 
ISABEL QUIGLY 


would make anybody's book of 
the year for any year there ever 
could be, especially as it comes 
with Its own magnifying glass 
for myopes. This Is the world's 
greatest historical dictionary, far 
which editing started in the 
1850s, and the greatest of all 
source-books for literary English. 
In fact its reservoir of quotations 


is unexampled. 
The Diction 


The Dictionary started to 
appear in 1888, ana it has taken 
the learned world nearly 100 
years to find , more than a hand- 
ful of earlier datings and (it is 
reported) its four deliberate 
jokes. The jokes of the Supple- 
ment have yet to be numbered, 
but there is certainly plenty here 
to amuse. The new Supplement 
replaces the one of 1933 with 
micrographically reproduced 
six-column pages, and it Is 
up-to-date enough to make you 
blink, however long-sighted you 
may be. It includes ‘monetar- 
ism' 1 , far example, first used by 
Newsweek in 1969; and “yuppie - 
in 1984, no sooner - *a Jocular 
term for a member of a socio- 
economic group comprising 
young professional people work- 
ing in cities'. 

GEORGE WATSON 


A MARVELLOUS ittSfe *&■£-. 
low’s Laughton; Mrs Tynan on 
Mr Tynan; a vintage tale from 
Dame Iris; elegant rapier-work 
from John Carey (Original 
Copy): Manhunt Crook’s survey 
of architecture (The Dfiemma 
of Style). But in the end lH opt . 
for language without words - 
Snowdon’s Stills 1984-87 (Wei- 
denfeld £ Nicolson, £15.96). The . 


royal shutterbug shows great 
good humour In his portraits; he 


good humour in his portraits; he 
reveals characters with fateful 
honesty - Nureyev on a Medici 


throne. Anthony Hopkins as a 
blasted oak, Alan Bennett in the 


blasted oak, Alan Bennett in the 
meat market.. Snowdon is our 
best celebrator of the lively arts, 
his stills leaping with life 

ROGER LEWIS 


motives, their journeys and their 
experiences. For any 20th cen- 
tury travellers the chapter on 
“Health" is worthwhile reading 
on its own. 'Abominations of the 
Earth' speaks for itself. The 
book is rare in another way too. 
It could actually be taken to the 
Mediterranean on a holiday and 
read with pleasure on a sunny 
beach or in the shade of a 
church. It was Eliot Warburton - 
and who now reads him? - who 
wrote more than a 100 years ago 
that as you travel south “at last 
even your island restlessness 
softens down and merges into 
the universal peace around*. A 
Christmas message? 

ASA BRIGGS 


OF THE numerous books about 
Oscar Wilde I have been pro- 


foundly moved by Richard Ell- 
man's (Hamish Hamilton, £15). 
This was written by an accom- 
plished scholar whose historical 
research into the detail of 
Wilde's life Is beyond praise. The 


SOME WRITERS make fine sub- 
jects for biographical portraiture, 
regardless of their literary merits 
.or demerits - Zola, for example, 
who set out to be a social histo- 
rian and propagandist rather 
than an imaginative artist; but 
around Whose c h aracter and 
career Alan Schom, an American 
scholar, has woven an absorbing 
book. 

The central point of the story 
he unfolds in Emile ZoJju A 


THERE ARE two separate 
literary competitions this 
year. 

first, The Yuppie's Lament. 
A first prise or £100 and see* 
erol lesser prizes are offered 
for on extract of not more 
than 14 lines from a poem 
with this title in the manner 
of Kipling, Housman, Eliot, 
Betjeman, Coward, Auden, 
Wallace Stevens, Larkin, 
Knthl e en Raise, Craig Raima, 
or any well - known poet of 
yonr choice. 

For a definition of Yuppie 
see George Watson’s choice 
on this page of the Oxford 
English Dictionary’s Supple- 
ment. It also gives a defini- 
tion of moratorium as follows: 
“A postponement an agreed 


delay, a deliberate temporary 
suspension (of some activity 
etc)". 

The second competition, for 
which there will be further 
cash prizes, is for a list of 10 
words on the use of which 
you would like to impose a 
moratorium for at least one 
year. 

Entries for one or both com- 
petitions to be sent to the Ut> 
eray Editor, Finanacial 
Times, Bracken House, 10 
Cannon Street, London, EC4P 
4BY. 

Tkey must arrive by 
Wednesday December 16. 
Results, winning entries, and 
a fall report will appear in 
the Weekend FT on 2nd Janu- 
ary, 1988 


in form that disconcerted habit- 
ual admirers. Both stowed tow 
the life we choose for ourselves 
never completely succeed? in 
suppressing the. life we utkftgjt. 
When an American Jew or a 
Caribbean Indian settles in rural 


England hiB repudiated house- 
hold gods move in with him. 
Roth made his point through a 
series of optical illusions; Nai- 
paul through a series of descrip- 
tive reflections. Roth ended In 
the country and the mood was 
deceptively comic; Naipaul 
began there and the mood was 


deceptively pastoral. Both left us 
In no doubt of the truth of 


Greene's summing-up of the nov- 
elist's art: 'Pain is my profes- 
sion.’ 

ANTHONY CURTIS 


NONE OF the political works 
that 1 have read came quite up to 
My Book of the Year standard, so 
I opt for Iris Murdoch's The 

Book and the Brotherhood 


the very best: by him or anyone 
else in recent years. Cameos of 
loneliness, loss or disappointed 
love, their cast of characters 
include a dying priest, a bicker- 


I FOUND The Diary of JuUe 
Manet (Sotheby's Publications, 


(Chatto & Windus, £11.95). I 
know much of it Is corny. 


£19.95) an enchanting book. 
Julie was the daughter of Berthe 
Morisot and Eugene Manet, the 
brother of the painter; she was 
orphaned early, and the kindly 
Impressionist painters took her 
under their avuncular wings. 


ing homosexual couple, a sui- 
cidal girl flautist, a spinster who 
sends herself letters, and any 
number of men and women 
negotiating mid-life crises or last 
vain stabs at love or romance.. 
But the stories are never depress- 
ing. MacLaverty’s eye for detail 
ana unobtrusive symbolism give 
his writing the same rich, slow, 
wry pulse as Graham Greene. 
Ana the compassion in the sto- 
ries is never heart-on-sleeve but 
contained In the act of imagina- 
tion which allows him to Inhabit 
widely different minds and souls 


Bourgeois Rebel (Macdonald/ 
Queen Anne Press. £14£5) is, of 
course, his hero s connection 


result is intensely dramatic. 
Though the end of his narrative 


is too tragic for enjoyment, I 
admired Euman's mastery of an 


intensely 


mastery of an 
Med and pro- 


vocative subject His method of 
-combining brilliant highlights 


-combining brilliant highlights 
with sinister shadows is mas- 
terly and his judgement of 
Wilde's writings strikes me as 
being definitive - the ultimate 
word. Indeed, this deserves to be 
called a great biography. 

HAROIl) ACTON 


with the Dreyfus case, where 
with a courageous article headed 
"I accuse*, he helped to rescue an 
innocent man from life-long 
imprisonment and restore the 
public's faith in French justice. 

Professor School's lucid 
account of this complex drama 
would alone make his book 
worth reading. It Is full, more- 
over. of illuminating minor 
details, such as Zola's impression 

of England. 

PETER QUENNELL 


know much of it is corny, 
woman 's-magazinish and, by 
now, Dome Iris may even have 
stopped parodying herself. She 


just writes like it now, as in the 
following: 'She noticed Daniel 


These extracts from the diary 
she kept between the ages lo 


and 20 (translated by Mine and 
Mile Roberts) give a view of 
their world as refreshing as a 
spring posy. Julie Manet 
describes them as leading good 
bon bourgeois lives - though 
their studios were cluttered with 
canvases, they kept an excellent 
table. Renoir gives hints on 
painting and Degas plays an 
unexpected role as a match- 
maker, finding a perfect husband 
for Julie. A delightful story with 
aptly chosen illustrations. 

JANE ABDY 


while seeking - and finding - 
their common humanity. 

NIGEL ANDREWS 


MY CHOICE Is George Schorl's 
London: Sketches and Water- 
colours of a Changing City, 

1820-1850 (John Murray, 
£14.95) by Peter Jackson. This 
volume containing work of the 
Bavarian artist, who had seen 
action at Waterloo and then 


MY CHOICE for 1987 has to be 
Saul Bellow's More Die of 
Heartbreak (Seeker & Warburg, 


£10.95) because it is simply the 
most stimulating novel 1 have 


I CHOOSE Simon Schama's The 
Embarrassment of Riches 
(Gollins, £19.95). It is a fascinat- 
ing presentation of Dutch society 
in the seventeenth century and 
uses ah extraordinary range of 
evidence and art to illustrate a 
title with which every good FT 
reader will sympathise. 

ROBIN LANE FOX 


following: 'She noticed Daniel 
Deronda lying on the bedside 
table under the pink-fringed 
shade of the lamp. She couldn't 
read it. She thought, perhaps I 
have come to the end of reading. 
J'ai lu tous les livres," But I sus- 


pect that I am not alone in being 
hooked on these intellectuals 


incapable of running their own 
lives. 

MALCOLM RUTHERFORD 


read for a long time. The story - 
about a distinguished botanist 


migrated promptly to London, 
selects some 250 drawings to 
compile a unique documentary 


don of the early Dickens who 
would have recognised It as his 
own. 

Exact locations of each image, 
are pinpointed by Peter Jack- 
son's encyclopedic expertise. We 
see Montague House transubstan- 
tiating into Smirke's monumen- 
tal British Museum; London 
Bridge going down beside Lon- 


about a distinguished botaiust 
who marries a younger woman 
and gets drawn into political 
intrigue and financial double- 
dealing - is secondary to the 
spariding provocativeness of the- 
language and the pleasure of the 
characterisation. 

We seem to have no equivalent 
to Bellow in the contemporary 
English novel. Iris Murdoch, ft ir 
example, who is of at least com- 
parable intellectual stature, 
teases and puzzles where Bellow 
outrageously mfliww and stimu- 
lates new lines of imaginative 
investigation. 


I’VE ALWAYS ADMIRED Elaine 
Feinstein’s fiction and suspected, 
even before I read it, that tor 
biography of the Russian poet, 

Marina Tsvctayeva, A. Captive 
UobJ Hutchinson, £15.95) 
would be special Published at 
the same time as the biography 
was a selection of Tsvetayeva's 
poetry, also translated by Fein- 
stein. The combination rives one 
a unique insight into the work- 
ing of the- creative mind faced 
with the turbulence of Russia in 
the early part of this century. 
But it is also an intimate study 
of a woman torn between 


AN ENJOYABLE book about 
Nicaragua seems like a contra- 
diction. Yet The Jaguar Smile 
(Picador, £2.95) by . Salman 
Rushdie Is not only enjoyable 
but often funny. El escritor 
hindu , as he became known, 
was the guest of the Sandinista 
Association of Cultural Workers 
for three weeks in July 1986 and 
embarked on his trip not know- 
ing what to expect, but fearing 
the worst What he found was a 
land of poets and bizarre details. 
As a founder of the Nicaragua 
Solidarity Campaign, his sympa- 
thies are made dear from the 
start But he can spot a rational- 
isation a mile off and Is worried 
about the threat to freedom from 
inside as welL as outside the 
country. He does not let doubt 
slide into cynicism or hope Into 
naivety. 

valeky McConnell 


I HAVE been delighted this year 
by the return of Duffy, the ex- 
cop with a wry outlook on life in 
Going To Tne Dogs (Viking 
£10.95). A corpse is thrown 
araonga curiously sleazy house- 
hold. The houseowner is a suc- 
cessful criminal married to a 
retired Page Three girt and the 
guests are not unfamiliar with 
exotic substances. 

The reader is treated to some 
philosophical Duffy musings on 
such diverse subjects as phobias, 
sex and the dangers 1 arising in 
the country for urban man, but 
the important thing about this 
book Is It is fun, as one of the 

kookler characters is fond of say- 
ing when explaining any aspect 
of her behaviour. 

BRIAN AGEE 


I CHOOSE CUCKOO HTT.T.. THE 
BOOK OF GORLEY by Hey- 
wood Sumner, ( Dent, £12.96). 
The distinguished Arts and 
Crafts artist and designer Hey- 


wood Sumner (1853-1940) had 
been bom and bred on Hamp- 
shire chalk. During the first 
years bade there in his house on 
the edge of the New Forest he 
made The Book of Gorlev, now 


don Bridge going up - and every- 
where people Intent on daily 
business. 

I found It riveting and inex- 
haustible. The time for real 
despair Is when London stops 

cha nging . 

DAVID PIPER 


. And behind all this the basic 
subject is deadly serious- nothing 
less, than a Spenglerian view of 
the West and the inevitability of 
.the good guys going down and 
the bad coming up. Now in his 
seventies. Bellow has proved 
himself once again , the most 
exciting talent m the field of 
-American fiction. 

GEOFFREY MOORE 


responsibilities to her family and 
to her art. No biographer could 
get closer to her subject or bring 
her closer t o her r eaders. 

RACHEL BURLINGTON 


I MUCH enjoyed Paul Delray's 
The Neo-Pagan*: Friendship 
and .Love In the Rupert 
Brooke Circle (Macmillan, 
£14.96), a subject both fascinat- 
ing and dislikable. Using a good 


AFTER ALL the words of 1987, 1 
turn to Visions of a Nomad 
(Collins, £20), Wilfred Thesiger’s 
stupendous photographs from a 
life of travel as my book of the 
year. 

Africa, Asia and the Arab 


published in a handsome 
lie, with endpapers of his 


with endpapers of his wallpa- 
derign Quercus drawn from 


the oaks of the Forest In his 
handwriting and crammed with 


world are his subjects 1 have 
never taken a photograph in 
Europe, nor photographed a 


his watercolour pictures, plans 
and. perspectives, this new found 
companion to the Natural His- 
tory of Selbome is a lively 
chronicle. 

GERALD CADOG AN 


Europe, nor photographed a 
European. It his-never occmred 
to me to do so." It is a book of 








PM 


tj 


’saw 






Financial Times Saturday November 28 1 987 


WEEKEND FT XVH 


ARTS 



FOR THE next two months, until 
10 January, the Kirov Ballet is in 
Paris, complete - as only a great 
Russian company is complete • 
with its own orchestra. Six dif- 
ferent programmes will be on 
view, and the opening perfor- 
mances last week brought a first 
chance for the West to see the 
full-length Le Corsairs as lately 
revised and revived for the Len- 


Le Corsaire 
comes west 

Clement Crisp visits the Kirov 
Ballet in Paris 


, » w Clement Cnsp visits the Kirov “ 

this staging, I had watched the conserve* 

Royal Danish Ballet’s La Sylph- Dd l.l CL 1H jTftl lS century. 

ide, where a nineteenth century „ Solovieva 

texthas been preserved and hon- whither Medora had been Vinogradov, artistic of * ers ®£}^ 

oured -***« years, if abducted for a second time. (Her the company. th e effect 

smne modernisation of style has life Is one of constant excite- And is this Le Corsaira still? century' 
been inevitable. Muuuis mutanr ment) This found the corps de We must forget any link with «SP«ted 
%hf U 4 I I2 nVllle ® ‘T'T deployed as living flowers Byron, unless he were a script- balletj on] 


“ ve '* dif- [n an exquisite ballabile, wtth WHter' for The Perils of Poidw^, a« allowed to don tuto, wtoch 
ferent with Le Corsaire. Med ora and her best friend, Gul- for the action is cinematic tara- niight lead the wicked Turks to 

The history of this celebrated ***«, - a relationship too convo- diddle. We must even forget the suppose that they have abducted 
crid ballet starts with a first ver- luted to rehearse here. - at the ballet’s narrative as it was origi- * couple of Evzones rather than 
sion mounted by Mszflier at the centre °*E some splendid classical nally conceived. What we see Is Greek maidens. 

Paris Opera in 1866. A slight evolutions. an illogical and reasonably fool-' „ Kzrfrr' 

debt was owed to Lord Byron, The ballet survived on terms 18,1 collection of scenes which 

whose poem of the same name of its dance excitements and its. serve as a setting for relics of the ^£*8* !£$ D h **2“f 

provided a tenuous dramatic scenic showpieces. I have to Petipa choreography: the famous 

scheme for the action. Par more record some Sight acquaintance P** ** deu » (wbldv ^ns out to ^ 

was owed to the spectacular with this, in that Iwas privi- be a pas de trots- for Med ora, 

stage effects - including a ship- leged to see Tamara Karsavina Conradjlnd his friend, Ali, who d? baliet^fn 

wreck - ofttahtanad *a stay mating Medora’a narrative of »!25!“ ffiTUSUK SJThUE 


• ervations. These have fine to do 

M with the decorative style pro- 

|r^ *M ■ vided by the designer Teymuraz 

K. tv KB. M M Murvanidze, whose- settings look 

both dated and not dated 
enough. They are sub-Bakst in 
» places, pure Hollywood glitz in 

| UTAOT others. What was arguably. 

i wy H I needed was design in the 19th 

' ▼ " kj century veristic manner so mag- 

, , t . nificently preserved by the Kirov 

isits the Kirov Kft,?®' 

conserved from the torn of this 
L JT dllo century. Costuming, by Galina 

* Solovieva# much given to tat- 

Vinogradov, artistic director of *** and fly-away hits of fabric 
the company the effect is over-busy. The last 

And iTthis Le Corsm stfll? century's conventions are 
We must forget any link with r^pwted m that for much tf the 
Byron, unless he wire a script- baflet ,, onI y, 
writer for The Penis of «« allowed to don tutos, which 


The history of this celebrated 
crid ballet starts with a first ver- 


efforts of the eponymous Cor- this great artist regteuSnTtar- S^riidSS ?S2^mor 


sair, Conrad. 


ror, and even showing 


The ballet reached St Peters- gf Ushtnlng, Is with me still 
burg in 1868 in a production by Kareavma seemed miraculously 
Jules Perrot, with assistance 10 have become the beautiful 
from Marius Petipa, who was TOSM^ immortalised in the 
also to appear as Conrad. Once old Petersburg photographs. 


SuTflZh ladies which are done with sub- the prindpai nwre than 
J2 Sub lime skill by the Kirov artists. Pg** For the two bahexiruis, 
ine , st r. L other elements from earlier ver- “edora and Gulnara, there are 


also to appear as Conrad. Once 
again stage machinery, grandiose 


sions exist as mad irrelevancies. virtuosos set-pieces but little 
The shipwreck opens the ballet «J?S tion £ 
on a note of hightheatrical dis- 


Even with Petersburg become 


scenery, woe of prime fasdna- Leningrad, Le Corsaire persisted 


play (begin as you mean to g 
on, is the motto of this version 


the Pasha’s harem, she meets her 
Mend Gulnara there, who mimes 


wsnpa four times before the end the ballet-master Pyotr Gusev 
of the century. Alterations were sought to restore it. with the 
made to the narrative; there assistance of the critic Yury 
wore large choreographic inter- Slonimsky, for the Maly Theatre 
polacions, of which the most in Leningrad, and before his 
important was the scene or the recent death, he had made a fur- 
Jardtn Amme as an entertain- ther recension for the Kirov, 
ment in the Pashas harem, which has been edited by Oleg 


and there follow such Jollities as ^ de ". how "£■ £® *5!» 0, 5 
a slave market, and a aoene In a l ? t . 001 of fi 8 ?]" 

grotto in which Conrad is given ■*“** “? d mto * tut “' “» **• 
a heavily drugged bouquet ns a fhow them some point work. 
Mickey Finn. ltis all good, dean Medora radiantly concurs. It is a 
rumbustious fun. equipped with tax “7 Srom ^ «rge nt dramatic 
exiguous traces of Uie old ballet scheme of La Bayadere axiA 



The Enchanted Garden scene from “Le Corsaire" 


Wee tiny fragments from a lost other Petipa »«1 b of the period, 
mosaic. Nevertheless, the Kirov’s balle- 

And is it worth-while? The rinas - 1 saw both Tatyana Terek- 
answer must be a “yes” with res- hova and Olga Chenchikova as 

i Medora, Yelena Pankova and 
Irina Chistyakova as Gulnara - 
seiae every moment Mbs Terek- 
hova has a dazzhrig way with 
the dances, and can blaze with 
passion when needed; Miss Chen- 
chikova, with her warmly opu- 
lent style, gives Medora a won- 
derful generosity of outline, 
superb in upper torso and arms, 
that seems deserving of better 
things. Both Konstantin ZSklin- 
sky and Eldar Aliyev are decent 
Conrads (there is a certain 
amount standing about to the 
role, arms crossed, registering 
nobility, when not rushing to 
rescue Medora); dance honours 

S to All, the hero’s statutory 
end, and here Faroukh Ruzl- 
xnatov, an ardent temperament 
matched by ardent dancing, is 
very fine. 

ThusLe Corsaire in its newest 
Incarnation. Part pantomime, 
part garden of remembrance, it 
needs Kixovian passion to make 
any sense of it at afl. The happy 
_ . _ thing is that tiie Leningrad art- 

s Corsaire" ists can provide Just that 


Warsaw in London Auction record for 

he Warsaw Philharmonic are a playing neither any great virtue, T> _ _ . _ j a * 0 __ tTk... n ■ .. * - - - * 

ively, responsive orchestra. STiny notable fault KOSSCttl S tTOSGlDlIIG 

“hey are not the subtlest of Beethovens Emperor concerto J A 1 F 1U ^ 


The Warsaw Philharmonic are a 
lively, responsive orchestra. 
They are not the subtlest of 
ensembles when it comes to the 
finer degrees of textural colour- 
ing and emphasis - but they 
respond to firm and muscular 
direction, and they can reliably 
produce, as on Thursday at the 
Festival Hall, a perfectly decent 
and enjoyable concert of the 
mainstream repertoire. 

The Warsaw Philharmonic’s 
programme, conducted by their 
General and Artistic Director 
Kazimierz Kord, opened with 
Sibelius (the Finlandia over- 
ture) and ended with Shostakov- 


enough balanced, agreeably' 
tuned, tolerably well shaped. 
Neither one made history, dla- 


KIRI TE Kanawa sings Eliza 
Doolittle. Next week, no doubt, 
Lulu sings Madame Butterfly. In 
theory, such cultural crossovers, 
as the New York Times calls 
them, are a good idea. In prac- 
tice, the results can be embar- 
rassing. The new My Fair Lady 


playing neither any great virtue, 
or any notable fault. 

Beethoven’s Emperor concerto 
was the centrep i ece , and John 
Lill was the solo pianist. His 
playing throughout had splendid 
clarity, and there were more 
than one or two moments, espe- 
cially In the slow movement, of 
unusual delicacy and refine- 
ment. There were other gestures 
too which seemed curiously, and 
unexpectedly, withdrawn - as if, 
since the fundamental stance of 
the performance had not yet, 
been quite settled, caution was 
the best policy. For all his quali- 
ties, Lill is not known principally 
as a risk-taken but I have cer- 
tainly heard more interesting 
and adventurous Beethoven 
from him than this. 

Dominic Gill 


A PAINTING by Dante Gabriel 
Rossetti of Proserpine, the wife 
of Pluto who was doomed to 
inhabit Hades for ever, sold for 
& 1 ,430,000 at Christie’s yesterday 
to the London dealer, Christo- 
pher Gibbs. It was an auction 
record for a Victorian picture; 
and more than doubled its esti- 
mate. 

Rossetti painted eight versions 
of the myth, using Jane, the wife 
of William Morris, as his model: 
he was infatuated with her. Only 
three survive: one in the Tate, 
one In Birmingham City Art Gal- 
lery, and this, the finest version. 
It sold at auction for S745 in 1888 
and for £5,250 in 1964 when it 
was acquired by the artist 
L&Lowxy. It was on loan to the 


Manchester City Art Gallery. | 
The auction of 19th century 
paintings totalled £3,141397 but | 
with 30 per cent unsold. The 
main casualty was a painting 
from Bume-J one’s famous series i 
“The Briar Rose*, which had 
been lost for many years. It was ! 
bought in at £520,000, at the bot- 
tom of its estimate, suggesting 
some greed on the part of the 
lady vendor. A portrait of Sybil, 
the female prophet, as envisaged 
by Lord Leighton, sold for 
£286,000. For a century this 
painting had been lost but it sur- 
faced recently in a lavatory in 
Connecticut. 

Antony Thorncroft 


Records 


(Decca MFL1, CD 421 200-2) & 
heavy with the noise of Kiri 
holding herself In. The phrasing 
is beautiful and deliberate.the 
tone lush.the Cockney vowels 
emphatically wishing us a very 
Maori Christmas. 

But it all sounds dreadfully 
respectable, heavily corseted and 
joyless. All-night dancing is the 
last thing Imaginable on this 
Liza's agenda, that song deliv- 
ered with crystalline but colour- 
less purity. Something much 
more sinister and suic i dal than 
upward mobility and falling in 
love is- going on here. Not so 
much hurrah Kiri as hare Kiri. 

John Maucerl conducts the 
London Symphony Orchestra 
with great verve, and Jerry Had- 
ley, a fine American lyric tenor, 
proves that “On the street where 
you live* can withstand both an 
opera singer's full technical clout 
and years of automatic render- 
ing, and rending, elsewhere. 

I last thought of Jeremy Irons 
as a musical performer when he 
played opposite David Essex in 
Codspell m the early 1970s. His 
Higgins is apoplectic with asper- 
ity, wildly tasteless in parts, but 
a good outline for stage develop- 
ment. Irons sings more and bet- 
ter than did Rex Harrison, and 
could well xe-define the role as 
his own. 

There is a wonderfully exuber- 
ant and tiddly Doolittle from 
Warren Mitchell and an unwit- 
tingly hilarious Pickering from 
John Gielgud, cooing meticu- 
lously like a pigeon with tummy 
ache. 

litis My Fair Lady fails not 
because it never really hap- 
pened, but because no-one seri- 
ously considered the po&ibilfty 
that it might. Show albums are 
best when based on real shows. 
Follies (first Night Encore 3, 2 
records, 2 CDs) is a wonderful 
memento of one of the year's 
theatrical highlights, and a fine 


Showbiz time 


record in its own right. The mir- 
rors, the tap, the regret and the 
brassiness are all centre stage at 
the Shaftesbury in “Who's That 
Woman,' led by Lynda Baron, 
and that number is the crux 


Woman,” led b 
and that numl 
here, too. 

The four new 
has written for 


The four new songs Sondheim 
has written for London are sty- 
listic post-dates of Follies proper 
and, with the exception of the 
poisoned conversation piece for a 
childless marriage, “Country 
House,* unexceptional. Diana 
Rigg is involved in two of them 
and is, not surprisingly, better in 
the flesh than on disc. Julia 
McKenzie gives poignant, cutting 
and definitive versions of “In 
Buddy’s Eyes* and "Losing My 
Mind/* David Healy is superbly 

bouncy and bright 
A terrible climactic collision is 
made of ‘Broadway Baby,* “Ah 
Paree* and ‘Rain cm the Roof* 

i which Pearl Carr and Teddy 
ohnson discharge fleetly ana 
charmingly), a serious staging 
flaw that I am shocked to find 
uncorrected in the recording stu- 
dio. Otherwise, no complaints. I 
prefer this Follies to the crazed 
hysteria of the Avery Fisher con- 
cert recording, and it obviously 
replaces the exiguous original 
cast album. • 

That’s Entertainment Records 
has pioneered show recordings 
and much needed excavation 
work in recent years. As other 
competitors enter the breach, so 
the company has widened its 
range to include opera, operetta 
and film scores. Top of their 
Christinas list, and of mine, is 
the New Sadler's Wells HMS Pin- 
afore (TER 2 U50, 2CDs), a 
recording of pristine freshness 
and barking brio. 

I must confess that I remained 
immune to the vaunted quality 
of this production a few years 


back. But I happily trade that 
disappointment far this, the first 
complete recording, lovingly pre- 
pared from the composer's auto- 
graph copy by David Russell 
Hulme. Nickolas Grace preserves 
for posterity his tight-jawed Sir 
Joseph of the erect stance and 
princely vowels, and there are 
other musical performances of 
the highest class from Linda 
Onniston as Buttercup and Gor- 
don Sandison as the Captain of 
the Queen's Navy. 

The band arm chorus under 
Simon Phipps’s vigorous direc- 
tion have great fun giving us all 
three finales (the Golden Jubilee 
one, the original and D'Oyly 
Carte’s). If D’Oyly Carte do 
return, as is rumoured, to the 
West End next year, they will 
find new and other standards to 
contend with. 

That's Entertainment belies its 
name, alas, with Gian-Cario Men- 
otti's Amahl and the Night Visi- 
tors (TER 1124), a Christmas 
fable whose date, 1961, suppos- 
edly places it in the composer's 
rich period. This version was 
given at Covent Garden last 
Christmas, James Rain bird out- 
standing as the crippled beggar 
boy visited by the Three lungs 
en route to Bethlehem. Loma 
Haywood sings his mother, Don- 
ald Maxwell Melchior. But oh. 
and ouch, and ugh, what bland 
musicality, what cloying senti- 
mentality. The Menotti-ness of it 
all soon becomes monotonous. 

Mare tizuty but more fun is 
The Girl Friend (TER 1148), 
based on the Mercury, Colches- 
ter. revival of Rodgers and Hart’s 
1928 musical comedy praised on 
this page by Martin Hoyle. About 
half of the songs are not by the 
masters at all, but derive from 
the 1927 West End bastardisation 
which incorporated the work of 


such other songsmiths as Gus 
Kahn, Can Conrad and Otto Har- 
bach. 

The result on record is an 
Inharmonious hybrid, indiffer- 
ently performed. Best songs are 
‘Blue Room,* “Mountain Green- 
ery” and the title number, on 
which Sandy Wilson, I submit, , 
improved in his imperishable 
parody. ! 

Affectionate dramaturgy char- 
acterised Richard Eyre's High 
Society (EMI SCX6707 k CDP 
7467772) now entering the last 
lap of a year's run at the Victoria 
Palace. The record is far superior 
to tiie show, the voices in good 
order, the musical direction and 
orchestrations of George Fenton 
witty and smart. It is not fit to 
live with the Cole Porter song- 
books of Merman, Fitzgerald or 
Sinatra, but it has pezazz and 
Angela Richards singing "In tire 
StflJaf the Night.* 

As a theatrical melodist, 
Andrew Lloyd Webber may yet 
touch new heights, but The 
Phantom of the Opera (Poly dor 
PODVC9, 2 records, CD 831 
273-ST) wm be a hard act to fig- 
low. His lyrics — here by Charles 
Hart and Richard Stilgoe - obey 
pop song imperatives rather than 
Cole Posters example, but the 
work achieves an overall thrill- 
ing emotional crescendo, one 
fully captured on this recording, 
the most technically and atmo- 
spherically accomplished in my 
Christmas haul 

David Cullen is an unsung 
Lloyd Webber associate who 
works closely with the composer 
on all his orchestrations. Mr Cul- 
len has produced and arranged 

Cantabfle’s Music of tiie Night 
(EMI SGX 6712), a selection of 
songs from hit shows of the 
1980s performed in dose har- 
mony by two tenors, baritone 
and counter-tenor. This sot of 

easy listening I usually find hard 

to take, but! bent my ear vora- 
ciously towards a brilliant "Oh 
what a c ircus * from Evita and a 
funky, growling, get-on-down 
‘Runt Tom Tugger* from Cats. 

. Michael Coveney 


A new 
Cooney 
farce 
is bom 

EARLY CHRISTMAS silliness 
is on tap at the Yvonne 
-Arnand in Guildford, where 
Bay Cooney's new medical 
farce, It Runs in the Family, 
opened on Thursday night. 

There is not much that is 
■intrinsically funny about the 
continuing deficiencies of our 
Health Service, but, as usual, 
Mr Cooney is immune to con- 
temporary realities. The hos- 
pital common room panto- 
mime is in rehearsal and a 
paternity suit is about to be 
served on a fraught neurolo- 
gist, Dr Mortimore, who is 
due to deliver the Ponsonby 
lecture to an international 
conference. 

This robust structural 
groundwork does not yet 
yield ecstatic farce of the 
highest Cooney calibre, but it 
is fascinating to see the 
author — who ai«o directs and 
appears as a glum stooge to 
John Quayle's spreade&gled 
comic hero — testing his 


conditions. The National The- 
atre conducts precious experi- 
ment behind closed doors. 
Cooney keeps open house, 
and Guildford knows it is 
participating in play-making 


Opera 


Sinopoli’s Tosca 


Mortimore’s wife (Wanda 
Ventham) Is on hand to Te»d 
support which is promptly 
demolished by an old nursing 
flame (Una Stubbs) announc- 
ing that her child by Morti- 
more Is eighteen, a qualified 
driver, in trouble with the 
police, and looking for Daddy. 
Young Leslie (Ian McCurrach) 
is a punkish booby with torn 
Jeans and an irritating habit 
of doing Michael Crawford 
im pres si ons. The chairman of 
■the hospital board (Dennis 
Ramsden) wants to know 
when the lecture will start. 

Panic stations ensue with 
Mortimore passing himself off 
to his own son aa a patient 
who came in with gout only 
to be operated on for piles. 
Half the cast find themselves 
outside on a window ledge in 
a snowstorm and Matron 
(Charmian May) is syringed 
in the bottom. A junior doctor 
(Peter Blake) is keen to dress 
up for rehearsals and 
becomes one of several pro- 
liferating matrons with bro- 
ken arms and Celtic accents. 

Trouser legs are rolled up, 
identities bartered with 
manic glee, and Mr Cooney 
finds himself sitting on a 
drugged, incipiently nympho- 
maniac Matron with a mous- 
tache, a clerical career and 
two pairs of legs. As in every 
good farce from Ben Travers 
to Joe Orton, the location 
becomes a madhouse filled 
with aa epidemic of unbridled 
lunacy. 

When a real patient (Derek 
Royle) at last appears in a 
wheelchair, he tak es the com- 
mon room to be a private 
ward stuffed with people and 
diversions assembled merely 
to keep him happy. Mr Royle 
is our most blissfully decrepit 
farceur, and his accelerating 
discomfiture, locked in lava- 
tories and thumpingly des- 
patched to the sidelines, is a 
source of unalloyed joy and 
vicious delight. 

The piece needs fine tuning 
and a tighter control over the 
offstage fracas at the confer- 
ence and the re h ea r sal- 1 also 
think Mr Cooney should 
devise a way of getting more 
characters into nursing gear, 
starting with Bill Pertwee's 
ramrod police sergeant. 

In John Quayle’s brilliantly 
funny performance we see 
the confirmation of this 
actor’s right to be considered 
a star in the farcical galaxy. 
Tall and angular, there are 
hints here of both John 
Cleese and Michael Barry- , 
more- But comparisons are ! 
transcended in his own spe- 
cial brand of threatening i 
acquiescence, casual destiu o- - , 
tiveness and lightning speed 
of thought and action. 

Michael Coveney ] 


Chess No. 699 

1 Q-N3. If KxR; 2' N-K6, or if 
B-N6 (or R-R6); 2 Q-B4, or if 
B-N3 (or R-N5); 2 Q-B3, or if 
N(K2) moves; 2 Q-Q6, or if N(N7) 
moves; 2 Q-K3. 


THE LATEST revival of the ven- 
erable Zeffirelli production of 
Puccini's Tosca at Covent Gar- 
den has potentially a strong cast, 
headed by Ingvar Wixell's Scar- 
pia and Eva Marlon’s Tosca. Less 
creditably, it is conducted Ire 
Giuseppe Sinopdi, and almost all 
one’s doubts about the evening 
can be attributed to that source. 

Slnopoli’s treatment of the 
score Is in one authentic sense a 
phenomenon: it is quite unlike 
anyone else's. But that does not 
imply that it is either idiomatic 
or illuminating, quite the oppo-* 
site - many of the lines emerge 
haphazardly stressed, their, tex- 
tures inverted, and the singers 
are left to cope as best they can, 
further hampered by ponder- 
ously slow tempi. It is often hard 
to explain Sinopoli’s mauling of 
the score other than In terms of 
sheer incomprehension; he does 
not seem to grasp the expressive 
point of a phrase, or to pursue a 
harmonic rhythm for more than 
a few bars at a time, so that the 
music advances in fits and starts, 
the stresses applied with unfail- 
ing Inaccuracy. And when an 
instrumental detail is selected 
for preferential treatment, 
deformed or decoupled from its 
context, it Is given no justifica- 
tion for independent existence: it 
becomes just another event 
along the way. a musical folly to 
sit alongside aU the others. 

All things considered, the sing- 
ers coped admirably with Thurs- . 
day's opening. The chief casualty 
of the arbitrary distortions was 
Peter Dvorsky's Cavarodossl, 
who was hobbled by Sinopoli’s 
lethargy at "Recondite armorua" 
in the very first scene, lost his 
sense of phrase, and took the 
remainder of the act to recover 
some equilibrium. That opening 
act never got into gear: neither 
Marten’s nor Wlxefi's Intensity 
proved sufficient in itself to com- 
pensate from the absolute lack of 
dramatic Impetus from the ptL 

It was not until Act 2, by 
which time one had learned to 
ignore what was happening in 
the orchestra except on particu- 
larly absurd occasions, that this 
Tosca and Scarpia began to draw 
blood. There is little vulnerabil- 
ity about Marion’s portrayal: 
visually and tonally it is robust, 
almost too imposing, but it is 
hard not to admire the confi- 
dence with which. "Vissi d’arte". 



Etna Morton 


was launched, nor the control 
with which it was sustained. 
Wixell’s Scarpia is now a well 
known quantity, and his care- 
fully modulated, alarmingly 
credible performance, coupled 
with suave, Intelligent singing 
offered perhaps the evening's, 
most roundly satisfying contri- 
bution. 

Yet supporting roles too are 
solidly cast - a special word for 


Roderick Earle's splendidly per- 
sonable Angelotti - so that the. 
evening's disasters were almost 
exclusively confined to the con- 
ducting. Collectors of gruesome 
operatic occasions may look for- 


operatic occasions may look for- 
ward to a Radio 3 relay of the 
production on December 5, when 
Slnopoli's "interpretation" may 
be enjoyed to the full. 

Andrew Clements 


Adroit use of faith 


THE POTTING Shed (Radio 4, 
Monday) displays Graham 
Greene's versatile technical «irfii 
The story is a characteristic 
study of the merits of faith, that 
might have been the basis for a 
novel; at the same time, the play 
is very much a three-act theatre 
piece of its time (1957). Three is 
a mystery to seduce Aunt Edna, 
and a sort of happy end for ail 
the unhappy characters. Why, 
when James Callifer cornea to his 
father Henry's funeral (where he 
has not been invited) is he afraid 
to go to the potting shed, where 
his niece has quartered his dog 
for the night? Half-explanations 
are offered. 

The old gardener’s widow, Mrs 
Potter, is more specific. You 
hanged yourself, she tells him, 
and you were saved by your 
Unde William (another of the 
family not asked to the funeral). 
Uncle William was not invited 
because. In a family headed by a 
fanatical rationalist, he became a 
priest. And, as we learn when 
James visits him, he had indeed 


Radio 


that faith has two sides, for 
unbelieving Henry also believed 
that William had brought the 
■boy bade to life, and he wrote no 
more of his scepticisms. A sort of 
happy end, 1 called it, as happy 
as the end of Measure for Mea- 
sure ; but the interest of the play 


brought the dead boy back to 
life, oy malting a bargain with 
God: let him live, and you can 
take away what I love most. 
What William lost was his devo- 
tion, and when James caught up 
'‘with him his priestly duties were 
no more than automatic. 

Where Greene shows his Inge 1 
.rnrity is in his demonstration 


Garard Green as William. 

Only a short note for Greene’s 
Cheap in August, dramatised by 
Elizabeth Troop from a short 
story. It tells of a sophisticated 
woman's brief weakness for "a 
fat, frightened old man” whom 
she met on holiday in Jamaica. It 
was well played by Valerie Sar- 
ruf and Robert Beatty, but it was 
still a short story. 

Drama of another calibre was 
Michael Payne's Lady Faustas, 
with which Radio 4 inaugurated 
"High Fantastical,” a series of 
plays about magic. Franz was a 
young officer in the 19th-century 
Austrian cavalry, where magic 
was naturally accepted. He went 
to the mysterious home of tiie 
mysterious Lady Faustus, who 
had made her annual appearance 
at the regimental ball, having 
had a mysterious invitation, for 
no one knew who she was. When 


they had made love, she 
demanded a year of his life. Next 
day he insulted his captain and 
was challenged. Running to Lady 
Faustus, he offered such a year 
if he might win the duel. One of 
Lady Fkustus's mysterious ser- 
vant’s pet wolves attacked his 
opponent, and Franz, a gentle-' 
man to the last, used his one 
round to kill the beast rather 
than the captain; so he died and 
deprived his love of her gift, an 
item in her formula for staying 
young for ever. David Johnston 
directed, and Rule Lenska and 
James Aubrey kept parody at 
arm's length. 

Sunday's The Medium and the 
Message did not strike me as a 
serious inquiry into mediums. 
We heard records of Doris Col- 
lins passing trivia from the dead 
to their survivors, to their evi- 
dent pleasure. Brian India reck- 
oned some people could pick up 
others' thoughts in controlled 
conditions. David Berglas 
explained how information could 
be returned as novel when It had 
already been unconsciously 
given- There was talk of ’enti- 
ties,* though Miss Collins said 
she had never met evil spirits. If 
this subject is to be dealt with, ft 
needs a much dfeeper approach 
than Trevor Barnes gave ft, or it 
becomes mere entertainment. 


BA.Yonng 



Arf Galleries 

OOLNAOM 14 Old Bond SLW1 4S1 7«0L 

MASTER PRINTS - FIFTEENTH - NINE- 
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PICK OF THE WEEK AT CHRISTIE’S 

Pablo Picasso 

Tete de Femme de Profil, 1906 

Signed, oil on canvas, 18'xl4' 

This is one of the earliest studies by Picasso of his mistress, 

Femande Olivier, and shows the artist first starting to assimilate Greek 
Classical art. 

It is one of 23 Important Modem Painting? and Watercolours from the 
collection formed by the late Josef Muller, of Solo drum, Switzerland, to 
be sold ar Christie's, King Street, on Monday 30th November at 7.00. pm. 
In addition that evening 55 notable Modem works of art will be sold, 
including Degas' les Blanchisseuses’ and Gauguin'S 'Les Trois Huttes! 
For further information about these and other sales in the next week, 
and for a copy of the monthly sales calendar, please telephone 
01-839 2746. 


8 King St, London SWI 

85 Old Brampton Rd., London SW7 

164-166 Bath St., Glasgow 




6 





XVm WEEKEND FT 


Financial Times Saturday November 28 1987 


■ /< 




SPORT 


Tennis/John Barrett 


Rugby/ John Kitching 


A lack-lustre end to the year 


ThedaysoffrleBdly 
fixtures are dot quite 
over but file league 


THIS IS the silly season in ten- 
nis. Next week in New York and 
the following week In London 
the top eight men in singles and 
the top eight pairs in doubles 
will, in theory at least, be disput- 
ing the last great tournaments of 
the year to decide who really are 
the kings of the court. Yet the 
men competing in the two 
Nabisco Masters events will be 
more concerned with the finan- 
cial implications of their partici- 
pation than with the titles them- 
selves. That may sound cynical 
but it is a view based on 15 years 
of observation. ' 


lay. If they are tired then It is 
ecause they have been indulg- 


ing in too many 'special events.* 
Not that I have any objection 
to special events as such. In fact 
I believe they play an important 


role in bringing the game to a 
wider public. However, it Is 
surely perfectly fair for the 
Grand Prix organisers • the 
Men's International Professional 
Tennis Council - to make rules to 
protect the investment of their 
sponsors. 


surely perfectly fair for the 


The Grand Prix competition 
itself is a season-long, points- 
linked circuit which was estab- 
lished in 1970 as a defence 
against the encroachments of the 
entrepreneurs whose activities 
had accelerated the arrival of 
open tennis In 1968. The theory 
was that players would not be 
tempted to play "special events” 
if the prizes for the Grand Prix 
bonus pool and for the last 


While the rules are there the 

{ 1 layers will abide by them - as 
ong as there is a financial 
advantage. Accordingly you can 
be sure that Jimmy Connors, 


who had said he was taking a 
lengthy break from the game fol- 
lowing a surprise defeat in Israel 
last month, will be there next 
week competing at Madison 
Square Garden so that he can 
pocket the $100,000 that comes 
to him for being sixth on the 
Nabisco points list. Tired or not, 
wouldn't you? 


event, The Masters, were high 
enough. Accordingly over the 
years money has been poured, 
into these two areas. When Cliff 


Richey won the points race in 
1970 his reward was $25,000 and 
the Masters winner that year, 
Stan Smith, took $10,000. Con- 
trast that with the 5300,000 that 
Ivan Lendl will be paid next 
week as points leader for the 
year and the $200,000 that the 
Masters winner will receive. 
Inflation accounts for only a 
small percentage of those 
increases. 


The sad thing Is that the Mas- 
ters, despite several changes of 
format, has never been the great 
climactic event it should have 
been. Too few of the participants 
are mentally prepared for what 
inevitably will be one of the 
toughest weeks of the year. Mind 
you, it Is better now that these 


events are played in December. 
When thev took place in January 


When they took place in January 
as the first tournaments of the 
year there was a distinct after- 
Christmas rustiness about every- 


But there is a snag. The eight 
men who head the points tame 
cannot claim their bonus prizes 
unless they participate in the 


ones game. 

In trie past we have too often 
had examples of players clearly 
not giving their best in the 
round-robin section. To tackle 
that problem the players now 
receive an appearance fee of 
S 10,000 plus $20,000 for winning 
any of their three round-robin 


Masters. No great hardship, you 
might think, for men whose liv- 
ing is concerned with chasing a 
fluffy yellow ball about a court. 
Yet they will tell you, these 
hardened athletes who we, the 
media, have turned into the 
pampered poodles of the sporting 
world, that at the end of a hard 



talent from the shackles of doubt 
he Is providing some truly majes- 
tic tennis. 

What of Beckef? I have been 
with the double Wimbledon 
champion all this week in Frel- 
drichshafen where he has failed 
to defend the Waterford Young 
Masters title that he had won for 
the past three years. IBs 2-6 6-4 
6-2 loss to Magnus Gust&fsson 
revealed an inability to serve 
with his customary power. More 
worrying was his lack of custom- 
ary zest for the game. He looked 
overtrained and drawn - perhaps 
a legacy of the illness that has 
kept him off the singles court for 
the past five weeks. 

However, now that he has 
adopted the Australian disciple 
of Harry Hopman, Bob Brett, as 
his coach I believe we might see 
an upward curve in his fortunes 
- severely dented since the 
much-publicised break with for- 
mer coach Gunther Bosch last 
January in Melbourne. Brett will 
gradually restore the confidence 
that has been the missing factor 
In Becker's powerful game. The 
20-year-old has been like a rud- 
derless vessel this year. He will 
learn from Brett that he must 
use his wonderfully powerful 
frame to overwhelm the opposi- 
tion as he did so magnificently 
at Wimbledon in 1985 and 1986. 


LETTS BE honest; it hasn't been 
as awful as some of us feared. 

Rugby's Courage English Clubs 
Championship opened this sear 
son amid speculation that it 
would be bad for The Game; that 
it would lead to full-scale profes- 
sionalism ; and that it would 
sound the death-knell of friendly 
fixtures, many of which had his- 
tories stretching bade over 100 
years. 

Some of that 1$ true, but most 
Is not. It is, in the words of Peter 
Jackson, the distinguished for- 
mer British Isles winger, "the 
culmination of 20-odd years of 
working towards an objec- 
tive. . .we'd have had a league 
then if Fd had my way." 

Courage has committed £1.6m 



Having said that, Burgess 
acknowledged that the champi- 
onship was "now the very foun- 
dation of the playing structure In 
England on which all our hopes 
are based.” 


But there has been no sharp 
rise In off-the-ball incidenw or 
sendings-off. although the level 
of foul play still remains unac- 

C *S!e l o? i the more enjoyable 
games I have seen this season 
would not on paper have exited 
any but the most dedicated fol- 


lower. It was played on a sunny 
afternoon at Grange Road, Cam- 
bridge, between the University’s 
LX club (second string) and St 
Thomas’s Hospital, London. It 
was not a league match. 


leagues throughout the country. 
This compares with 92 dubs m 
the Football League and 508 in 
the FA Cup. 


Is it a 
league 


Not for him the long baseline 
rallies which his manager Ion 
Tiriac seems content to nave let 
him attempt for most of this 
year. Brett will also help him to 
recover the service dominance 
upon which he built his early 


The leagues stretch from the 
high and mighty national Divi- 
sions One, Two and Three, con- 
taining the likes of Bath, Leices- 
ter, Nottingham and Wasps 
down to Yorkshire Divisions Five 
and Six, including Adwick-le- 
Street, Rown trees chocolate 
works and the men from what 
was once described as the last 
resort on the east coast, Withem- 


ahead? 


What was so good about it was 
that the ball was run out to the 
wings time and again and the 
forwards were not prepared to 
slug it out In a dour struggle 
which all too often typifies tee 
game at the higher levels. 

Still, one has to be realistic; 
the league is no place In which 
to take risks - ana student sides 
which stay outside the champi- 
onship (because of holiday com- 
mitments) can afford to throw 
the bell about. 

Never the less, it has long been 


reputation. More than that, he 
will restore the joy of playing 
which made the younger Beater 
such a compelling personality. 

Of the others the enigmatic 
Czech, Mecir, is the one most 
likely to upset the seedings. He 
has so often beaten Wi lander 
that one must expect him to do 
so again. He will almost certainly 
beat Cash and could worry 
Edberg. I shall never forget the 
way he ensnared the bewildered 
Swede in his web at Wimbledon, 
in 1986. 

These two, Mecir and Edberg, 
are the only ones due to return 
to the Royal Albert Hall for the 
Nabisco Masters Doubles in two 


Ivan Lendl - points leader for the year 


matches. For winning a semi-fi- 
nal they earn $50,000 and a fur- 
ther $100,000 is awarded to the 
overall winner. 


Along with Lendl in the Rod 
Laver group (a nice tribute to 


season of some fourteen tourna- 
ments, plus Davis Cup ties, 
involving at the most 22 weeks 
of play, they really need a pro- 
longed rest. 

Clearly this is nonsense. The 
great men of the past played 
more tennis than that without 
complaint, and there were more 
five set events then, all without 
tie- breaks, as well as doubles 
and mixed doubles in which 
today’s top singles men rarely 


So who is likely to be the new 
Nabisco Master? Current evi- 
dence points to Ivan LendL Not 
only na> die World Champion 
proved himself the outstanding 
player of the year with seven 
tournament wins including a 
third French and third US Open 
title but he is also at his best on 
the indoor carpet that is the sur- 
face next week. In fact he has 
been In the last seven finals at 
Madison Square Garden winning 
in 1981, '82, *86 and *86. 


Laver group (a nice tribute to 
the great Australian you might 
think, but It turns out Laver is 


following injury and is down at 


Itaparica in Brazil fighting for 
Doints with Gilbert. If Gilbert 


as the sponsor's inter- 


(seeded 4), 


(5) and either Brad Gilbert or 
Andres Gomez (8). In the Pancho 


Andres Gomez (8). In the Pancho 
Segura group (not an employee 
as far as 1 know) are Stefan 
Edberg (2). Mats Wilander (31 
Miloslav Mecir (6) and Pat Cash 

%. Gilbert/Gomez struggle is 
an interesting one. Gomez has 
only just returned to competition 


points with Gilbert. If Gilbert 
gets to the final then he will 
qualify for the last place If he 
loses earlier and Gomez wins the 
tournament then the big 
left-hander from Ecuador will 
qualify. 

Edberg will be the choice of 
many to win for the first time 
Ever since he beat Cash at the 
start of the year the 21-year-old 
Swede has been improving 
steadily as his six Anther tourna- 
ment wins testify. A shy man, he 
is at last starting to believe By 
releasing his abundant natural 


As with any league system, it 
is theoretically possible for sides 
such as Withemsea to spend 10 
or 12 years working their way up 
from Yorkshire Five to National 
One That is where the excite- 
ment and r-halfon ge Ilea far the 
more ambitious junior chibe 


The Bath and England scrum- 
half Richard HOI says: "They are 
a step in the right direction. We 
.at Bath will attach more impor- 
tance to the table now it is better 
organised and we will go all out 
to win." 


a fact of rugby life that hundreds 
of talented student players are 
lost to the game after university 
or college, presumably because 
they find club rugby little to 
their liking. It would be a shame 
if the intensely competitive 
nature of the leagues caused an 
even greater exodus from rugby. 

The brave new world of 
leagues has certainly brought a 
great seriousness to the game 
and winning 2s now of pan- 


One of the most controversial 
comments comes from David 


Cooke, former England and Har- 
lequins flanker. He says "If it Is 


Never the less. It is sad to see 
many a friendly fixture falling 
by the wayside as a result of the 
league system; and it is worth 
noting that the pressures of the 
English championship will lead 
to fewer Anglo-welah and 
Angjo-Scottiah matches. 


properly organised and adver- 
tised, it will hasten the arrival of 
professional rugby, which can- 
not come quickly enough.* 

Professionalism is a burning 
Issue in Rugby Union at present. 
Ripples from the David Bishop 
affair (did he or did he not cross 
the border into Rugby League 
before returning to the Ponty- 
pool fold?) spread throughout 

^TS^ptesident of the RFU, 
John Burgess, spoke of his fears 


week’s time. This championship 
is at least a joyful end-of -terra 
romp in which the players can 
relax and enjoy themselves. It 
will be a pleasure to visit after 
what I anticipate will be a rather 
.dour week in New York. 


The championship has, how- 
ever. been warmly welcomed by 
the majority of players, particu- 
larly those in the too leagues. 


Gary Pearce, Northampton and 
England tight-head prop, says: 


mount Importance. The system 
should bode well for the fortunes 


should bode well ; 
of the England te 
national Champ; 
New Year. 


team in the Inter- 
ipionship in the 


In the words of Rory Under- 
wood, the Leicester anti England 


wing, who is one of the most 
exciting runners in world rugby: 
"It will improve the standards of 
the lower clubs and that will 
lead to better per fo rmances right 
up to the top. it most bring an 
improvement in the national 
game." . . 

Underwood’s sentiments will 
be echoed by Geoff Cooke, the 
new England team manager, 
who is hoping to bring the fluid 
approach of his successful York- 
shire side .into the England 
camp. 


England tight-head prop, says: 
"They create a cup-tie atmo- 


sphere and will keep interest 
alive throughout the season. It 
must lead to better rugby being 
played all round." 


be naive to believe that a system 
of dub leagues will be a panacea 
for all our problems. 

"The championship will lead to 
the game receiving even more 


FT CROSSWORD No.6,4«M 

SET BY DINMUTZ 


SATURDAY 


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H2Q am The O re stoa t Aroart oa n Kara. 
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720 am Today. 220 News. 025 Sport On 


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m 

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SUNDAY 


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DOWN 

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aamtaaii onaanaara 
m n n za a a a 
Hasanaa nnaanraafu 
Hnamaana 
atnurnasna sanaaa 

momni sossiian 
aaanoiana 
asaaacia anna 

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ULBYGR 

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120 From The Festivals 1987: Wagner's 
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— d V er sa — In the ttte rote (sung in Gar- 
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-Sendoe. 7il5 Janeoafc-s Term Butxt* 
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publicity than before, bo attract- 


ing power-seeking Individuals 
with little real love for the game. 
Such individuals could try to cir- 
cumvent the game's amateur 
regulations in search of sqcccm. 
TMs., I beUevejaa real danger." . 


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